Finding 619191 (2022-001)

Significant Deficiency
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2023-06-27

AI Summary

  • Core Issue: Incorrect annualized income calculations led to improper benefit payments for two clients.
  • Impacted Requirements: Organizations must have effective internal controls to ensure compliance with eligibility criteria for the Low-Income Home Energy Assistance program.
  • Recommended Follow-Up: Implement additional staff training and enhance internal control procedures to ensure accurate benefit payments.

Finding Text

Condition: Benefits paid to or on behalf of the individuals were not calculated using the correct annualized income. Three of the 60 client files tested had income improperly calculated, two of which resulted in incorrect benefit payment amounts. Criteria: Organizations operating the Low-Income Home Energy Assistance are required to maintain sufficient internal controls to ensure compliance with eligibility requirement. Context: A sample of 60 clients with total benefits of $72,222 were selected for testing for the year. The testing found two files with incorrect benefit payment amounts totaling $556. Effect: The assistance payments on behalf of the two clients noted above are not made in accordance with program regulations. Cause: Greater Lawrence Community Action Council, Inc.?s internal controls were not operating effectively to prevent or detect incorrect assistance payments made on behalf of the clients participating in the program. Auditor's Recommendation: Greater Lawrence Community Action Council, Inc. provides additional staff training and implements additional internal control procedures to ensure that benefit payments made on behalf of the clients participating in the program are made in accordance with program regulations. View of Responsible Officials and Planned Corrective Action: Greater Lawrence Community Action Council, Inc. agrees with the finding. To tighten the quality control process, the LIHEAP program continues to offer on-going training to all staffs on the application review and approval process. Additionally, two staff members have been assigned quality control duties and are tasked with performing detailed reviews of all client applications, and paying close attention to income verification documentation.

Categories

Questioned Costs Eligibility Internal Control / Segregation of Duties

Other Findings in this Audit

  • 42749 2022-001
    Significant Deficiency
  • 42750 2022-001
    Significant Deficiency
  • 619192 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.568 Low-Income Home Energy Assistance $8.64M
10.557 Special Supplemental Nutrition Program for Women, Infants, and Children $5.17M
93.558 Temporary Assistance for Needy Families $1.20M
10.555 National School Lunch Program $551,657
93.575 Child Care and Development Block Grant $526,262
81.042 Weatherization Assistance for Low-Income Persons $390,995
14.231 Emergency Solutions Grant Program $375,000
93.600 Head Start $346,716
93.596 Child Care Mandatory and Matching Funds of the Child Care and Development Fund $315,567
93.569 Community Services Block Grant $269,132
93.994 Maternal and Child Health Services Block Grant to the States $209,715
97.024 Emergency Food and Shelter National Board Program $207,725
14.261 Homeless Management Information Systems Technical Assistance $168,757
10.558 Child and Adult Care Food Program $139,208
14.239 Home Investment Partnerships Program $28,251
21.207 Coronavirus State and Local Fiscal Recovery Funds $23,330
84.425 Education Stabilization Fund $2,305