Finding Text
2023-006. Allowable Costs/Cost Principles
United States Department of Housing and Urban Development
Continuum of Care Program ALN: 14.267
Criteria: 24 CFR 578.99(e) of the Uniform Guidance states the requirements of administrative
requirements, cost principles, and audit requirements for Federal awards under 2 CFR 200.
Condition: An allocation for costs within the administrative components of the budget was not
maintained. A percentage of the total administrative budget was requested for reimbursement based
on an estimate of costs expended.
Cause: Personnel changes limited the Organization’s ability to properly contemporaneously track the
allocation of the administrative expense.
Potential Effect: Not having a documented allocation of the administrative component of the budget
could result in the Organization reporting and receiving reimbursement for the incorrect amount of
related costs.
Questioned Costs: The administrative budget is $71,544
Identification of a Repeat Finding: This is not a repeat finding.
Recommendation: The Organization should implement procedures to ensure that administrative
related charges to the program are documented by an allocation calculation.
Views of Responsible Officials of Auditee: The Organization agrees with the finding and will implement
procedures to ensure an allocation for administrative related expenses is performed and documented.