Volunteers of America MichiganNon-Profit

Finding Type Noncompliance and Material Weakness. Federal Program Affordable Care Act Health Profession Opportunity Grant, CFDA #93.093. Criteria In order to be eligible for the program, the client must be a current recipient of Temporary Assistance for Needy Families (TANF) or Food Assistance Program (FAP), a United States Citizen, a resident of Wayne County, free of criminal background, at least 18 years of age and have a passion to work in the healthcare field. The individual client file must include documentation to support that the eligibility requirements were met. Condition During our testing, we noted two clients that did not have an ID or proof of TANF or FAP included in their client file. As a result, we were unable to conclude that the client met all the eligibility requirements. Cause The employee that was working with these clients is no longer with the Organization. It is likely that the documents were in his e-mail. However, the inactive employee?s e-mail had been completely wiped and their IT department was unable to recover the data. Effect Clients that were not eligible were enrolled in the program. Perspective Information A sample of 40 clients were selected from an audit population of 240 clients. The test found two instances of clients that did not have an ID or proof of TANF of FAP included in their file to support their eligibility. Recommendation We recommend procedures be put in place to ensure appropriate documentation is maintained to support the eligibility requirements are met. If this information is provided via e-mail then the documentation should be printed and retained in the client file. Response:The HPOG program has operated with a normal process of collecting physical copies of identification documentation but moved to electronic collection due to the covid-19 pandemic and processing of remote enrollments. The new electronic process for collection and storage of electronic documentation was established on 5/11/2020. Identified staff will review all clients enrolled during this timeframe to ensure appropriate documentation is on file. Current practice for other social services programs is to perform monthly sample audits on casefiles to ensure documentation standards are being met.

SECTION III FEDERAL AWARD AUDIT FINDINGS 2019-001 Finding Type Noncompliance and Material Weakness. Criteria Income must be at or below 50% of the Area Median Income and the veteran?s income level must be supported by appropriate documentation within their client file. During our testing, we noted one veteran whose income was not fully supported by the proper documentation. Condition During our testing, we noted three veterans at the SSVF East location whose income was greater than 50% of the Area Median Income. We also noted one veteran at the SSVF East location whose income was not fully supported by proper documentation within their client file. Cause The staff members in the program?s East location in charge of calculating eligibility were not calculating the amount correctly and did not properly obtain information to support the veteran?s income. Effect Veterans that were not eligible for funding received assistance. These amounts are subject to disallowance and refund to the United States Department of Veterans Affairs. Perspective Information A sample of 28 clients at the SSVF East location were selected from an audit population of 146 clients at the SSVF East location. The test found three instances of veterans whose income was greater than 50% of the Area Median Income and one veteran whose income was not fully supported by proper documentation within their client file. Questioned Costs Utilizing the amount of assistance provided for the 4 clients that were not eligible to receive funding, we noted likely questioned costs of $46,429.63. SECTION III (CONTINUED) FINDING NUMBER 2019-001 Recommendation We recommend procedures be put in place to ensure income levels are met before giving veterans funding and appropriate documentation is maintained to support those income levels. Response Staff members in the East location for this program have been terminated and new staff have been put in their place