Finding 619887 (2022-001)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-07-02
Audit: 38754
Organization: United Planning Organization (DC)
Auditor: Sb & Company LLC

AI Summary

  • Core Issue: Management failed to provide documentation for independent review of income for 5 out of 11 participants.
  • Impacted Requirements: This lack of documentation violates 2 CFR ?200.303 regarding internal controls and eligibility verification under the CSBG Act.
  • Recommended Follow-Up: UPO should establish proper procedures for documenting eligibility reviews and provide training on these processes.

Finding Text

Condition: For 5 out of 11 selections, no support was provided by management to document independent review and verification of income amounts reported by the selected participants. Criteria: In accordance with 2 CFR ?200.303: The Non-Federal entity must: (a) 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. As defined in CSBG Act, at 42 USC 9902(2), Eligible Entities/Other Subrecipients: The official poverty guidelines as revised annually by HHS shall be used to determine eligibility. The poverty guidelines are issued each year in the Federal Register and on the HHS website (http://aspe.hhs.gov/poverty/). The CSBG Act, at 42 USC 9902(2), grants the state the authority to adopt a revised poverty threshold but it may not exceed 125 percent of the HHS-determined poverty guidelines. Audit procedures should be designed to test whether recipients of CSBG services meet the federal poverty guidelines. Cause: UPO did not have proper controls in place to ensure the eligibility requirements of the grant were met. Effect: UPO may not be in compliance with the eligibility requirements of the grant. Questioned Costs: Unknown Recommendation: We recommend that UPO: (1)implement procedures and documents needed for documentation and retention of the review and approval of eligibility criteria; and (2) provide training about procedures related to the documentation of eligibility evaluations. Management?s Response and Corrective Action Plan: See schedule of corrective action plan.

Categories

Subrecipient Monitoring Eligibility Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 43445 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.569 Community Service Block Grant $14.03M
93.569 Cares Act Csbg-Supplemental Fund (covid19) $11.54M
93.600 Early Head Start (ehs) Fed Fy'21 $7.57M
93.600 Head Start (hs) Fed Expansion Fy'21 $1.96M
93.575 Child Care Stabilization $1.85M
93.600 Quality Improvement Network - Hub Expansion $1.12M
93.600 Quality Improvement Network - Hub Federal $920,045
94.011 Foster Grandparents Program - Cncs $562,895
10.558 Usda/nutrituion Cacf Program $163,900
84.287 21st Century Community Learning Centers $125,727
93.600 Early Head Start (ehs) Fed Fy'22 $96,537
14.235 Community Partnership/dcdhs/hud $91,356
93.600 American Rescue Plan Qin Hub $47,152
93.788 Opiod/methadone Treatment Center/hca Fed (sor) $44,536
10.551 Supplemental Nutritional Assistance Program (snap) $42,559