Finding 577676 (2023-001)

Material Weakness
Requirement
A
Questioned Costs
-
Year
2023
Accepted
2023-11-06
Audit: 2307
Organization: Senior Resources, Inc. (SC)

AI Summary

  • Core Issue: The Agency incorrectly assessed participant eligibility for the Foster Grandparent Program, leading to material noncompliance with federal requirements.
  • Impacted Requirements: Eligibility criteria include being 55+ years old and having an annual income below $29,160; miscalculations resulted in ineligible participants receiving stipends.
  • Recommended Follow-Up: Management must adhere to existing controls for timely eligibility reviews and conduct an internal audit of current participants by 10/31/2023.

Finding Text

Information on the Federal Program: Assistance Listing Number 94.011 - Foster Grandparent Program, Corporation for National and Community Service. Compliance Requirement: Eligibility Type of Finding: Material Noncompliance. Criteria: The Agency receives federal funds for the Foster Grandparent Program, which allows adults, ages 55 and older, to serve as mentors, tutors, and supportive adults to children and youth with special or exceptional needs or identified as limiting their academic, social, or emotional development. The participants receive stipends (currently at $4 a hour) for the amount of hours they work on a monthly basis. The grant has various compliance requirements for the adults to participate in the program. The Agency determines the participants eligibility by determining that the adult is at least 55 years of age and that their total annual income (less allowable medical expenses), must fall at or below 200% of the poverty level as annually established by the South Carolina Department of Health and Human Services, which is $29,160 for 2023 . Condition: On the determination of eligibility based on income, the Agency failed to calculate and approve the participants income correctly and in a timely basis. Upon recalculation it was found that the participant had an annual income greater than the $29,160 threshold. Cause: This was due to oversight by management and not following the controls in place to approve the eligibility of participants. Context: Error occurred due to a miscalculation by program staff and was identified during recalculation. Effect or Potential Effect: Incorrect calculation of income results in the payment of stipends, mileage reimbursements, and applicable expenses for a participant that is not eligible for the program in accordance with grant requirements. Recommendation: Management should follow the controls that are in place to approve and review in a timely manner the eligibility of adults into the program and to review the participants eligibility status on an annual basis. View of Responsible Official: The Agency agrees with the finding. The Agency will terminate ineligible participant immediately and will conduct an internal audit of all current participants to be in compliance with financial reporting and single audit reporting requirements. Planned Implementation Date of Corrective Action : 10/31/2023 Person Responsible for Corrective Action: Andrew Boozer, Executive Director, Marcus Hunter, Director of Finance and Operations, and Beverly Breuer, Director of FGP/SCP Programs.

Categories

Eligibility Cash Management Reporting

Other Findings in this Audit

  • 1234 2023-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $548,046
94.011 Foster Grandparent Program $276,303
94.016 Senior Companion Program $174,739
93.778 Medical Assistance Program $122,278
97.024 Emergency Food and Shelter National Board Program $77,994
20.509 Formula Grants for Rural Areas and Tribal Transit Program $1,100