Finding Text
Finding 2023-004 Administration for Children and Families
Federal Financial Assistance Listing #93.566, 2202SDRCMA, 10/01/2021 – 9/30/2023
Federal Financial Assistance Listing #93.566, 2302SDRCMA, 10/01/2022 – 9/30/2023
Refugee and Entrant Assistance – State Administered Programs
Eligibility
Material Weakness in Internal Control over Compliance
Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control
over the federal award that provides assurance that the entity is managing the federal award in compliance with
federal statutes, regulations, and the terms and conditions of the federal award.
Condition: We noted the following matters during testing which affected 11 participant files;
a) Four participant case files were not reviewed through the Organization’s peer review process and two
participant case files were not reviewed in a timely manner through the Organization’s peer review
process.
b) Four instances in which the family’s first month’s prorated cash assistance payment was not properly
calculated based upon the date the Cooperative Agreement and Rights and Responsibilities Form was
signed by the client.
c) One instance in which a family was underpaid based upon their family size and eligibility for the month.
d) One instance in which a family was moved from the Refugee Cash Assistance program to another
program and the expenses remained to be charged under the Refugee Cash Assistance program.
Cause: The Organization experienced staff turnover along with an increase in refugee arrivals during the fiscal
year creating an increase in the workload of staff members. In addition, the Organization’s policies and designed
controls were not followed.
Effect: Ineffective controls over this area of compliance could result in a reasonable possibility that the
Organization would provide services to ineligible participants and the Organization would not detect ineligibility
in a timely manner.
Questioned Costs: $1,005
Context/Sampling: A nonstatistical sample of 35 participant case files out of 153 participant case files were
selected for testing which included $83,824 of participant payments out of $353,391.
Repeat Finding from Prior Year: Yes, prior year finding 2022-005
Recommendation: We recommend that management review the Organization’s policies, procedures and
controls over eligibility with applicable program employees to ensure compliance with the federal program.
View of Responsible Officials: Management is in agreement.