Audit 405540

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: HOME Investment Partnership Program Assistance Listing Number: 14.239 Award Period: July 1, 2024 through June 30, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: 2 CFR 200.430(g), Standards for Documentation of Personnel Expenses, states: (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (vi) 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 City’s payroll system allocated vacation hours across various programs and needed further reconciliation to identify eligible costs per employee timesheets. Questioned Costs: None. Context: All vacation hours not directly identified in the employees timesheet are charged based on payroll systems preset allocations. Cause: When the employees are on vacation and time is not directly identified in the employees timesheet, the payroll system defaults to a preset allocation. Effect: Payroll costs charged to the program were greater than amounts supported by the documentation.