Finding Text
Finding Number: 2022-002 Repeat Finding: No Type of Finding: Significant Deficiency in Internal Control and Nonmaterial Noncompliance Description: LIHEAP Application Certification Major Program: AL #93.568 ? Low Income Housing Energy Assistance ? FFY 2021, FFY 2022 and FFY 2023 Questioned Costs: None How the questioned costs were computed: N/A Compliance Requirements: Eligibility Condition: Out of the sample tested, there were numerous applications that were not certified within thirty business days from the date of application. Criteria: Per the Home Energy Assistance Program (HEAP) Rule, ?The Subgrantee will certify or deny an Application within thirty (30) business days from the Date of Application?. Cause: The Organization was understaffed during 2022 and couldn?t keep up with the volume of applications that needed to be certified within the thirty business days required. Effect: The Organization was not in compliance with the application certification requirement, resulting in nonmaterial noncompliance and a significant deficiency in internal controls over compliance. Recommendation: We recommend that the Organization implement a standard process for certifying the applications within the required timeframe to ensure compliance with the grant agreement and HEAP Rule. View of Responsible Officials: Management agrees with the finding and has committed to a corrective action plan.