Finding 621785 (2022-002)

U.S. Department of Treasury Pass-through Entity: N.C. Pandemic Recovery Office Program Name: Emergency Rental Assistance Federal Assistance Listing Number 21.023 Eligibility Nonmaterial Noncompliance Finding 2022-002 Criteria: In accordance with the requirements of the Emergency Rental Assistance Program (ERAP), funds can be used for prospective rent and rent arrears. Grantees must obtain, if available, a current lease, signed by the applicant and the landlord or sublessor, that identifies the unit where the applicant resides and establishes the rental payment amount. If a household does not have a signed lease, documentation of residence may include evidence of paying utilities for the residential unit, an attestation by a landlord who can be identified as the verified owner or management agent of the unit, or other reasonable documentation as determined by the grantee. In the absence of a signed lease, evidence of the amount of a rental payment may include bank statements, check stubs, or other documentation that reasonably establishes a pattern of paying rent, a written attestation by a landlord who can be verified as the legitimate owner or management agent of the unit, or other reasonable documentation as defined by the grantee in its policies and procedures. Condition: We noted one instance in which the supporting documentation of the payment for rent in arrears did not properly support the amount of payment made. Effect: The County could potentially provide more funding to a participant then permitted. Context: We examined 60 participants? case files to review the calculation of the program benefits, noting one instance where the participant was potentially overpaid benefits based on the supporting documentation provided. Questioned Costs: We noted a total of $2,800 in questioned costs related to the overpayment noted above. All claims tested totaled $350,045, with the projected questioned costs estimated to be $62,200, a calculated 0.8% error rate. Cause: The supporting documentation used for payment of rent in arrears included consideration of a reimbursement of funds already paid to the landlord by the tenant. Recommendation: The County should review its processes to ensure payments are properly calculated within each case file. Views of responsible officials and planned corrective actions: The County agrees with this finding.