Finding Text
Finding 2022-001 - Significant Deficiency in Internal Control over Compliance Federal Program: Assistance Listing Number 21.023, Emergency Rental Assistance Program, Federal Award Identification Number 20220000044, U.S. Department of Treasury, Passed through Texas Department of Housing and Community Affairs Criteria: The entity must establish and maintain effective internal control to provide reasonable assurance that only eligible individuals receive assistance or services under the federal award program. Condition: We selected a sample of 40 participants out of 395 for testing and noted the following: - Documentation to support nonduplication of benefits was lacking for 9 participants at the time the Intake Form was reviewed and signed by the organization?s staff. Additional information has been provided to the auditor to support that no duplication of benefits occurred for these 9 individuals. - For 1 participant, proper documentation regarding eligibility was obtained at time of intake; however, the Intake Form was not signed by the organization?s staff. Cause: Appears to be the result of the transitioning of personnel and insufficient training. Potential Effect: Lack of proper documentation could lead to ineligible individuals receiving benefits. Questioned Costs: None Recommendation: We recommend that a process be developed to ensure proper review of the Intake Form by the organization?s staff and that when questions are unanswered, additional information be obtained and maintained with the Intake Form. Views of Responsible Officials: The issue was caused by an oversight on our part compounded by personnel transitioning and training issues. To improve the internal controls and provide for adequate documentation, we will (1) modify the intake checklist to include the TDHCA - Housing Stability Services Program Intake Form, (2) new staff will be trained on completion of intake paperwork as part of their orientation process, (3) regular chart audits will be conducted to review and re-certify as necessary, (4) copies of the completed TDHCA - Housing Stability Services Program Intake Form will be submitted monthly to the Grant Compliance Specialist to review prior to monthly report submission, and (5) a compliance team will meet with the program team twice a year to provide updates on compliance requirements.