Finding Text
Condition: DSHA’s ERA program included various steps to monitor program disbursements for potential fraud. These monitoring processes were performed during the assistance determination process and by after-the-fact analysis and reviews. DSHA’s after-the-fact processes identified 17 households that potentially received $168,055 in fraudulent assistance during the program’s operation. As of June 30, 2024, the uncollected balance was $82,709. DSHA identified this potentially fraudulent assistance and recovered a portion but did not further pursue resolution of the matter.
Criteria: The Emergency Rental Assistance program FAQ specifically requires DSHA “…to investigate and address potential instances of fraud or the misuse of funds that they become aware of.”
Questioned Costs: $82,709
Effect: Assistance was potentially provided to ineligible applicants due to fraudulent submissions.
Cause: Internal controls over eligibility were not able to prevent or detect and correct potentially fraudulent behavior by applicants.
Recommendation: We recommend DSHA further investigate, and report fraud or potential fraud as required by the CFR and program guidelines.