Finding Text
2022-001 ALN: 93.568 LIHEAP/COVID-19 LIHEAP - Cash Management, Passthrough from Massachusetts Department of Housing and Community Development Condition: LIHEAP program are not adequately segregated from NEFWC?s general operating accounts. Cause: NEFWC has a centralized deposit account to receive all Commonwealth of Massachusetts electronic program payments, including LIHEAP. Electronic payments received for LIHEAP are then transferred to the respective LIHEAP checking accounts to be available for the programs? disbursements. We noted that transfers to the LIHEAP account are made, but not in the exact amount when the cash is received. Some LIHEAP cash receipts remain in the centralized deposit account and are transferred when program disbursements are made. Criteria: The LIHEAP program grant receipts should be immediately deposited directly into the respective program checking accounts upon receipt. Effect or Possible Effect: Cash from the LIHEAP program could be utilized for NEFWC?s other programs because it is not transferred from the centralized deposit account upon initial receipt. Recommendation: We recommend that management transfer the LIHEAP deposits immediately into the program?s checking account or investigate the ability to have LIHEAP electronic payments made directly into the program checking account. Views of Responsible Officials: Management agrees with the finding, see Corrective Action Plan.