Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Voucher Cluster
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: W1245VO164 - 2023
Award Period: January 1, 2023 – December 31, 2023
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires time and effort documentation for all individuals whose time is coded to the federal grants.
Condition: During our testing we noted that the organization is allocating payroll costs based on time study done several years ago and did not have time and effort documentation to verify actual time spent agrees on federal program agrees to the allocation being used.
Questioned costs: None
Context: During our testing of payroll, it was noted that 8 out of 19 payroll charges had no time and effort documented for the wages charged to the program. Procedures to document time and effort were implemented in July 2023.
Cause: The client has been using allocation determined several years ago and was unaware of time and effort documentation requirements until finding during prior year audit. Procedures to document time and effort were implemented in July 2023.
Effect: Noncompliance with HUD requirements.
Repeat Finding: Yes 2022-001
Recommendation: We recommend, the entity develop a method to track actual time spent on various programs to time allocated to federal award programs.
Views of responsible officials: There is no disagreement with the audit finding.