Finding 599609 (2022-001)

2022 ? 001 Emergency Rental Assistance Eligibility Prior Year Finding: N/A Federal Agency: Department of the Treasury Federal Program: COVID-19 ? Emergency Rental Assistance Assistance Listing Number: 21.023 Award Number and Period: ERA0279 (1/12/2021 ? 9/30/2022) ERAE0206 (5/10/2021 ? 9/30/2025) ERAE0299 (5/10/2021 ? 9/30/2025) Compliance Requirement: Eligibility Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Compliance: In accordance with Consolidated Appropriations Act, 2021 and 2 CFR 200.403 costs must be adequately documented, and benefits paid to or on behalf of individuals must be calculated correctly. Control: Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should comply with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States or the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition: The County incorrectly processed a benefit payment that included an overpayment of $30 by inadvertently including utilities on top of base rent. Questioned Costs: $30 ? Federal share of overpayment made Context: Sixty cases were selected for testing and the following exception was noted: ? For 1 of 60 cases tested, an overpayment was made. Total benefit amount overpaid totaled $30 by including utilities on top of base rent. Per the rent ledger and rental agreement, base rent and utilities totaled $1,525 and the payment total $1,555. Cause: The County did not have sufficient controls in place to ensure that all payments were processed adequately and could be supported. Effect The County made an overpayment of $30 to eligible participants using Emergency Rental Assistance funds. Recommendation: We recommend the County review its procedures and controls over the processing of beneficiary payments to ensure amounts are properly paid and reimbursed. Views of responsible officials: Management agrees with the finding.