Audit 11485

Program: Supportive Housing for the Elderly Award Period: July 1, 2022 through April 17, 2023 a) Criteria or Requirement Per 2 CFR 200.303, the non-Federal entity must establish and maintain effective internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statues, regulations, and the terms and conditions of the federal awards. b) Condition Found, Including Perspective During our test work, we selected a sample of 25 non-payroll disbursements made during the 2023 fiscal period. We noted one instance in which an expenditure was approved for payment based on the incorrect distribution account of the vendor invoice to Assisi, which included applicable amounts for other affiliated entities. The unallowable cost was $1,638 for the period. c) Possible Cause Assisi has a management review process to review invoices and related documentation before payments are disbursed. Assisi management review control that was in place did not operate effectively to prevent unallowable charges and inaccurate allocated amounts. d) Questioned Cost None reportable. e) Effect Funds were expended for unallowable purposes or for inaccurate amounts and evidence of the effective operation of management review controls was not maintained in accordance with Federal requirements. f) Statistical Validity The sample was not intended to be, and was not, a statistically valid sample. g) Repeat Finding in the Prior Year Not a repeat finding. h) Recommendation We recommend Assisi strengthen controls over the management review process to prevent unallowable costs and inaccurate amounts from being allocated to Federal programs. i) View of Responsible Officials Management concurs with the finding. While appropriate controls exist relative to management review and analysis of expenditures, opportunity exists to further enhance controls.

Program: Supportive Housing for the Elderly Award Period: July 1, 2022 through April 17, 2023 a) Criteria or Requirement Per 2 CFR 200.303, the non-Federal entity must establish and maintain effective internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statues, regulations, and the terms and conditions of the federal awards. b) Condition Found, Including Perspective During our test work, we selected a sample of 25 non-payroll disbursements made during the 2023 fiscal period. We noted one instance in which an expenditure was approved for payment based on the incorrect distribution account of the vendor invoice to Assisi, which included applicable amounts for other affiliated entities. The unallowable cost was $1,638 for the period. c) Possible Cause Assisi has a management review process to review invoices and related documentation before payments are disbursed. Assisi management review control that was in place did not operate effectively to prevent unallowable charges and inaccurate allocated amounts. d) Questioned Cost None reportable. e) Effect Funds were expended for unallowable purposes or for inaccurate amounts and evidence of the effective operation of management review controls was not maintained in accordance with Federal requirements. f) Statistical Validity The sample was not intended to be, and was not, a statistically valid sample. g) Repeat Finding in the Prior Year Not a repeat finding. h) Recommendation We recommend Assisi strengthen controls over the management review process to prevent unallowable costs and inaccurate amounts from being allocated to Federal programs. i) View of Responsible Officials Management concurs with the finding. While appropriate controls exist relative to management review and analysis of expenditures, opportunity exists to further enhance controls.