Audit 411535

Federal Agency: Department of Housing and Urban Development Federal Program Name: Continuum of Care Assistance Listing Number: 14.267 Federal Award Identification Number and Year: SC-112010 - 2025 Pass-Through Agency: Pierce County Pass-Through Number(s): WA0154L0T032316 Award Period: 5/1/25-4/30/26 Type of finding: Significant Deficiency in Internal Control over Compliance and Other Matter Criteria or specific requirement: Per 2 CFR 200.334, recipients of Federal funds "must retain all Federal award records for three years from the date of submission of their final financial report." This includes supporting documentation for all transactions funded by the Federal program. Condition: Of 40 samples tested, one sample had incomplete documentation retained. Questioned costs: None Context: The deficient selection was for water utility fees paid on behalf of one program participant. The participant in question had changed residences; while the old lease was provided, the new lease was misplaced and unlocated for audit testing. Cause: Due to insufficient procedures surrounding adequate documentation retention. Effect: Lack of sufficient documentation could result in payments made with program funds that are unallowable costs or activities for the program. Repeat finding: No Recommendation: Share & Care should strengthen document retention and disbursement review procedures by implementing a centralized filing system for invoices, lease agreements, and supporting documentation. Management should require all supporting documents to be electronically maintained and attached to each disbursement batch prior to approval. In addition, periodic reviews should be performed to ensure documentation is complete, properly organized, and readily accessible for compliance and audit purposes. Views of responsible officials: Management agrees with the finding and has provided its corrective action plan.