Finding Text
Federal Agency: Department of Health and Human Services
Federal Program: 93.568 Low-Income Home Energy Assistance
Identification Number: FIA/OHEP/22-001
Requirement: Cash Management
Type of Finding: Significant deficiency in internal control over major program
Criteria: Interest earned in excess of $500 on federal cash draws should be remitted annually to the Department of Health and Human Services, Payment Management System (Uniform Guidance Section 200.305(9)).
Condition: The amount of interest on federal cash draws could not be determined.
Cause: Management does not have any support for the interest earned specific to federal cash draws for this program.
Effect: If interest in excess of $500 was earned, the City would owe the Department of Health and Human Services.
Context: During inquiries with program management and the finance department, it was noted that the City does not believe they have earned interest in excess of $500. The City had total draw downs for the program of $2,053,514 which are subject to earning interest. The City was ultimately not able to provide any evidence to support the fact that the draw downs did not earn less than $500 and, as such, their claim could not be corroborated.
Recommendation: The City should track interest earned on each applicable federal program to ensure they are in compliance with federal regulations.
Views of Responsible Official(s) and Planned Corrective Actions: See corrective action plan.