FAC Explorer

Finding 51325 (2022-002)

-
Requirement
E
Questioned Costs
$1
Year
2022
Accepted
2023-06-13
Audit: 51090
Organization: Harmony Community Development Corporation, Inc. (TX)
Auditor: Capincrouse LLP

AI Summary

  • Core Issue: One out of 40 individuals received emergency rental assistance without proper documentation proving a COVID-19 related income reduction.
  • Impacted Requirements: Compliance with the American Rescue Plan Act, which mandates proof of eligibility for assistance.
  • Recommended Follow-Up: Ensure all required documentation is retained in each file to prevent future eligibility issues.

Finding Text

Lack of Documentation to Prove Eligibility DEPARMENT OF TREASURY ALN #: 21.023 Federal Award Identification #: Emergency Rental Assistance Program Condition: One individual out of 40 was awarded emergency rental assistance without proof of a COVID-19 related reduction in income. Criteria: Title III, Subtitle B, Section 3201 of the American Rescue Plan Act, 2021, Pub. L. No. 117-2 (March 11, 2021) Questioned Costs: $3,380 Context: The Organization obtained proof that a tax return was filed and made a note that the full tax return was going to be provided. There was a staffing transition after this individual had provided proof of a tax return being filed. Based on the information available in the file, it is possible that the proof of reduction in income was misplaced during transition and therefore not available during the audit process. Without the actual tax return, the records do not support a reduction in income to prove eligibility. Cause: There were a number of staffing transitions during the year. Effect: Award of emergency rental assistance to an individual that was potentially not eligible. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the Organization retain all required documentation in each file. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Lack of Documentation to Prove Eligibility Planned Corrective Action: The steps taken were a thorough review of the current documentation process. During the process specific areas were shown where the documentation was missing. A revised (SOP) standard operating procedure was developed that ensured staff reviewed and verified all the necessary information was collected. Part of the new SOP was how to properly store them and retrieve them in a secondary place outside of the internal housing portal. Training is ongoing as the staff has changed in recent weeks. The process will be regularly reviewed to ensure that the SOP is being followed and identify any new gaps that may emerge. Regular internal audits will also be followed to ensure that documentation is being correctly collected and stored. Person Responsible for Corrective Action Plan: Ayn Llopis, Finance Director Anticipated Date of Completion: June 1, 2023 and ongoing internal audits quarterly

Categories

Questioned Costs Allowable Costs / Cost Principles Eligibility

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.023 Covid-19 Emergency Rental Assistance Program $1.89M
14.228 Covid-19 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $377,847
97.024 Covid-19 Emergency Food and Shelter National Board Program $299,728
14.231 Covid-19 Emergency Solutions Grant Program $293,765
21.019 Covid-19 Coronavirus Relief Fund $141,126