2021-002 U.S. Department of Housing and Urban Development, pass through Los Angeles Housing
Services Authority, Emergency Solutions Grant – COVID recovery rehousing & emergency shelter
program – ALN 14.231
Criteria:
PART 200—UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT
REQUIREMENTS FOR FEDERAL AWARDS, Section 200.430, (i) Standards for Documentation of
Personnel Expenses
(1) Charges to Federal awards for salaries and wages must be based on records that
accurately reflect the work performed. These records must:
(vii) Support the distribution of the employee's salary or wages among specific
activities or cost objectives if the employee works on more than one Federal
award.
Condition:
The Organization did not comply with these requirements at the bi-weekly payroll level.
Effect of condition:
At the bi-weekly payroll level, not all the documentation supporting the salary expense
charged to the federal award for certain employees was maintained.
Questioned Costs:
The Organization has documentation to support the assertion that total salary expense
allocated to federal awards for the year ended 2021, is, in aggregate, commensurate with the
actual activity of employees. Hence there is no questioned cost.
Context:
During the year ended 2021 there were several personnel changes in connection with who
was overseeing and performing the accounting at the Organization.
Cause:
Management believes this error was caused by management oversight.
Repeat finding:
This is not a repeat finding.
Recommendation:
The Organization should implement appropriate procedures to create and retain the
documentation noted above supporting salary expense, at the bi-weekly payroll level, for each
employee allocated to federal programs.
View of responsible officials and planned corrective action:
Management agrees that we do not always have documentation of allocation at the payroll
level and with the turnover of staff in the accounting department during the year, it
exacerbated the situation. However, we want to emphasize that our records accurately
reflect the work performed for the total year basis. Further, we are currently putting a system
in place to remediate the situation. This system is expected to provide documentation of
allocation at a payroll level.
2021-002 U.S. Department of Housing and Urban Development, pass through Los Angeles Housing
Services Authority, Emergency Solutions Grant – COVID recovery rehousing & emergency shelter
program – ALN 14.231
Criteria:
PART 200—UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT
REQUIREMENTS FOR FEDERAL AWARDS, Section 200.430, (i) Standards for Documentation of
Personnel Expenses
(1) Charges to Federal awards for salaries and wages must be based on records that
accurately reflect the work performed. These records must:
(vii) Support the distribution of the employee's salary or wages among specific
activities or cost objectives if the employee works on more than one Federal
award.
Condition:
The Organization did not comply with these requirements at the bi-weekly payroll level.
Effect of condition:
At the bi-weekly payroll level, not all the documentation supporting the salary expense
charged to the federal award for certain employees was maintained.
Questioned Costs:
The Organization has documentation to support the assertion that total salary expense
allocated to federal awards for the year ended 2021, is, in aggregate, commensurate with the
actual activity of employees. Hence there is no questioned cost.
Context:
During the year ended 2021 there were several personnel changes in connection with who
was overseeing and performing the accounting at the Organization.
Cause:
Management believes this error was caused by management oversight.
Repeat finding:
This is not a repeat finding.
Recommendation:
The Organization should implement appropriate procedures to create and retain the
documentation noted above supporting salary expense, at the bi-weekly payroll level, for each
employee allocated to federal programs.
View of responsible officials and planned corrective action:
Management agrees that we do not always have documentation of allocation at the payroll
level and with the turnover of staff in the accounting department during the year, it
exacerbated the situation. However, we want to emphasize that our records accurately
reflect the work performed for the total year basis. Further, we are currently putting a system
in place to remediate the situation. This system is expected to provide documentation of
allocation at a payroll level.
2021-002 U.S. Department of Housing and Urban Development, pass through Los Angeles Housing
Services Authority, Emergency Solutions Grant – COVID recovery rehousing & emergency shelter
program – ALN 14.231
Criteria:
PART 200—UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT
REQUIREMENTS FOR FEDERAL AWARDS, Section 200.430, (i) Standards for Documentation of
Personnel Expenses
(1) Charges to Federal awards for salaries and wages must be based on records that
accurately reflect the work performed. These records must:
(vii) Support the distribution of the employee's salary or wages among specific
activities or cost objectives if the employee works on more than one Federal
award.
Condition:
The Organization did not comply with these requirements at the bi-weekly payroll level.
Effect of condition:
At the bi-weekly payroll level, not all the documentation supporting the salary expense
charged to the federal award for certain employees was maintained.
Questioned Costs:
The Organization has documentation to support the assertion that total salary expense
allocated to federal awards for the year ended 2021, is, in aggregate, commensurate with the
actual activity of employees. Hence there is no questioned cost.
Context:
During the year ended 2021 there were several personnel changes in connection with who
was overseeing and performing the accounting at the Organization.
Cause:
Management believes this error was caused by management oversight.
Repeat finding:
This is not a repeat finding.
Recommendation:
The Organization should implement appropriate procedures to create and retain the
documentation noted above supporting salary expense, at the bi-weekly payroll level, for each
employee allocated to federal programs.
View of responsible officials and planned corrective action:
Management agrees that we do not always have documentation of allocation at the payroll
level and with the turnover of staff in the accounting department during the year, it
exacerbated the situation. However, we want to emphasize that our records accurately
reflect the work performed for the total year basis. Further, we are currently putting a system
in place to remediate the situation. This system is expected to provide documentation of
allocation at a payroll level.
2021-002 U.S. Department of Housing and Urban Development, pass through Los Angeles Housing
Services Authority, Emergency Solutions Grant – COVID recovery rehousing & emergency shelter
program – ALN 14.231
Criteria:
PART 200—UNIFORM ADMINISTRATIVE REQUIREMENTS, COST PRINCIPLES, AND AUDIT
REQUIREMENTS FOR FEDERAL AWARDS, Section 200.430, (i) Standards for Documentation of
Personnel Expenses
(1) Charges to Federal awards for salaries and wages must be based on records that
accurately reflect the work performed. These records must:
(vii) Support the distribution of the employee's salary or wages among specific
activities or cost objectives if the employee works on more than one Federal
award.
Condition:
The Organization did not comply with these requirements at the bi-weekly payroll level.
Effect of condition:
At the bi-weekly payroll level, not all the documentation supporting the salary expense
charged to the federal award for certain employees was maintained.
Questioned Costs:
The Organization has documentation to support the assertion that total salary expense
allocated to federal awards for the year ended 2021, is, in aggregate, commensurate with the
actual activity of employees. Hence there is no questioned cost.
Context:
During the year ended 2021 there were several personnel changes in connection with who
was overseeing and performing the accounting at the Organization.
Cause:
Management believes this error was caused by management oversight.
Repeat finding:
This is not a repeat finding.
Recommendation:
The Organization should implement appropriate procedures to create and retain the
documentation noted above supporting salary expense, at the bi-weekly payroll level, for each
employee allocated to federal programs.
View of responsible officials and planned corrective action:
Management agrees that we do not always have documentation of allocation at the payroll
level and with the turnover of staff in the accounting department during the year, it
exacerbated the situation. However, we want to emphasize that our records accurately
reflect the work performed for the total year basis. Further, we are currently putting a system
in place to remediate the situation. This system is expected to provide documentation of
allocation at a payroll level.