Finding Text
Major Program: 93.568 - Low Income Home Energy Assistance (Grantor - Department of Health and
Social Services)
Type of Finding: Noncompliance and Significant Deficiency in Internal Control over Compliance
Compliance Requirements: Eligibility
Condition: We tested 68 client files and identified the following instances of noncompliance:
• One client’s annualized income was miscalculated, resulting in the household receiving a higher benefit amount than they were entitled to based on their actual income and household size.
• One client file did not contain a copy of a recent heating bill.
• The file of supporting documentation could not be located for one of our 68 sample items.
Criteria:
• The program requirements of the Low Income Home Energy Assistance contract administered by the Delaware Department of Health and Social Services indicate that each client file must contain the following documentation:
o Application signed by the applicant
o Social Security Card or documentation of all social security numbers of all occupants aged six months and over in the household
o United States Citizen or Qualified Alien verification
o Delaware residency verification
o Address verification
o Recent copy of electricity/fuel bill
o Lease agreement, if a renter
o Income documentation for all household members aged 18 and over if not attending school, including Zero Income Declaration forms, if applicable
Cause: Oversight of program compliance requirements regarding file documentation and human error in determining energy assistance benefits.
Effect: Two client files did not contain all the required documentation, and incorrect assistance benefit amounts were awarded to one household.
Recommendation: We recommend Charities review its internal controls and implement procedures to ensure that complete and accurate documentation is maintained for each program participant, and to ensure that program recipients are awarded the proper amount of assistance benefits based on their income, household size, and fuel type.