Finding 7401 (2023-002)

Subrecipient Monitoring and Eligibility (Low-Income Household Water Assistance Program) During the testing of the Low-Income Household Water Assistance Program (LIHWAP), we were unable to verify that adequate subrecipient monitoring was completed during fiscal year 2023. Subrecipients are responsible for determining eligibility for new applicants; therefore, subrecipient monitoring is required to ensure eligibility verification is completed. Per discussion with Corporation management, on-going monitoring was completed remotely by the Corporation through the available reporting system utilized by subrecipients, by performing desk reviews, budget tracking, and review of supporting documentation. However, monitoring procedures were not properly documented. In addition, annual on-site monitoring of subrecipients was not performed for fiscal year 2023. It is our understanding that the Corporation has resumed on-site monitoring during August 2023. Not performing and documenting adequate subrecipient monitoring could result in noncompliance with the grant agreement. In addition, not performing and documenting adequate subrecipient monitoring could result in ineligible recipients receiving assistance, or recipients receiving inaccurate benefit amounts. We recommend the Corporation review the process for performing and documenting completion of subrecipient monitoring, which includes eligibility verification of program participants, to ensure subrecipients are in compliance with grant requirements.