Fresno Madera Area Agency On Aging

Finding 2024-001 Internal Controls over Compliance – Eligibility (Significant Deficiency) Assistance Listing Number 93.778 – Medical Assistance Program Criteria: 2 CFR 200.303 requires that a federal award recipient must “(a) establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award.” Condition: During our review of compliance over eligibility, we identified one individual who was terminated from the program in November 2022, but continued to receive benefits through September 2024. Cause: Internal controls over eligibility compliance requirements were not properly designed and were not placed in operation. Management is responsible for compliance with requirements over eligibility and for the design, implementation, and maintenance of effective internal controls over compliance with the requirements of laws, statutes, regulations, rules, and provisions of grant agreements applicable to its federal program. Effect: As a result of this condition, an individual who was no longer eligible for benefits through the program continued to receive benefits. Recommendation: We recommend that FMAAA establish a process to ensure that terminated participants are properly disenrolled from the program and are no longer receiving benefits after their final date of eligibility. This process should include a secondary review of participant files by someone other than the preparer. Management’s response: See corrective action plan.

Finding 2023-001 – Subrecipient Monitoring (Aging Cluster) (Significant Deficiency) Assistance Listing Numbers Affected: 93.041, 93.042, 93.043, 93.044, 93.045, 93.052, 93.053 Criteria: In accordance with Title 2 U.S. Code of Federal Regulations (CFR) 200.332, pass-through entities must comply with the following: • 2 CFR 200.332(d) through (f)- Monitor the activities of the subrecipient as necessary to ensure that the subaward is used for authorized purposes, complies with the terms and conditions of the subaward, and achieves performance goals (2 CFR sections 200.332(d) through (f)). Pass-through entity monitoring of the subrecipient must also include the information at 2 CFR 200.332(d)(1) through (4). Additionally, per the grant agreement from the California Department of Aging, on-site program monitoring is required to be performed every two years. Condition: We noted Fresno-Madera Area Agency on Aging (the Agency) did not perform required monitoring activities of the subrecipients during the fiscal year. These are required elements of the subaward in accordance with 2 CFR 200.332(a) of the Uniform Grant Guidance. Cause: The Agency had internal personnel changes which caused this issue as there were not sufficient personnel resources to perform all required monitoring activities. Effect: There is an increased risk that subrecipients could not be in compliance or could have material questioned costs of noncompliance related to the program. Recommendation: We recommend that the Agency perform required monitoring activities over subrecipients in a timely manner in accordance with Title 2 U.S. Code of Federal Regulations (CFR) 200.332, the California Department of Aging, and the Agency’s own policies and procedures. Management’s Response: See Corrective Action Plan.