Finding Text
Finding 2024.002: Eligibility - Significant Deficiency
Grantor: U.S. Department of Health and Human Services
Federal Program Names: HIV Emergency Relief Project Grants
Federal Assistance Listing Numbers: 93.914
Federal Award Identification Number and Year: A23-0249 – 2024
Name of Pass-through Entity: City of New Haven
Criteria
In accordance with 2CFR 200.303(a), Internal Controls, a non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. The specific eligibility requirements are unique to each Federal program, in accordance with the terms and conditions of the Federal award pertaining to the program.
Condition
During our testing over eligibility requirements, we were unable to review sufficient documentation to support that benefit recipients were eligible for benefits.
Cause
The Organization’s internal controls over eligibility were not consistently followed to ensure the presence of documentation to support that all benefit recipients were eligible for benefits.
Effect or Potential Effect
Lack of sufficient support over eligibility could result in ineligible individuals receiving benefits.
Questioned Costs
None.
Context
We selected 40 beneficiaries charged to the federal program to test compliance and controls over eligibility. Out of the 40 individuals tested, we noted 2 instances where there was no documentation to support that benefit recipients were eligible for benefits and the internal controls over eligibility were followed.
Identification of Repeat Finding
None.
Recommendation
We recommend that management provide training to those responsible for verifying eligibility to ensure that documentation and internal control over eligibility is maintained.
Views of Responsible Officials and Planned Corrective Actions
Management agrees with the audit finding and will strengthen internal controls and accountability to correct the deficiency.