Finding 2023-001
significant deficiencyquestioned costs
- Program
- LOW-INCOME HOME ENERGY ASSISTANCE (93.568)
- Compliance requirement
- Allowable costs/cost principles
- Questioned costs
- $2,200 (known)
- FAC record
- FY2023 audit on fac.gov
Finding text from the filing
Questioned Cost: Known questioned cost: $2,200
Likely questioned cost: $201,522
Recommendations: Management must update their income determination process ensuring that income
calculations are calculated according to program rules and that it maintains awareness
of specific program updates or changes. TCOG staff must comply with the program
updates and/or changes and if necessary, request training from the Department’s
Community Affairs Division’s training section
View of Responsible
Officials: TCOG’s management will address the matter identified as described in the corrective
action plan.
Federal Agency: U.S. Department of Health and Human Services
Type of Finding: Significant deficiency and noncompliance in internal control over compliance
Noncompliance
Recurring: No
Compliance
Requirement: Eligibility
Program Information: ALN 93.568 Low-Income Home Energy Assistance
Criteria: Internal control procedures affect an agency’s ability to process Low-Income Home
Energy Assistance (LIHEAP) client applications that are authorized and accurate.
Management must establish and maintain effective internal control over compliance
to provide reasonable assurance that financial reports are accurate and supported.
Condition: The 40 client files reviewed revealed eight (8) files containing inaccurate income
determinations based on 10 TAC Rule §6.4 requirements. During the review two (2)
files contained inaccurate income determinations that negatively impacted client
eligibility and the amount of benefits received. This resulted in questioned costs.
Cause: The Energy Grant Department does not have sufficient procedures for determining
and reviewing income determination calculations.
Effect: As a result of this condition, there are known and likely questioned costs and failure
to meet eligibility requirements could lead to loss or return of funding.