Finding 1089339 (2022-002)

Section III – Federal Award Findings and Questioned Costs U.S Department of Housing and Urban Development, passed through Strategies to End Homelessness Continuum of Care – Assistance Listing 14.267 Finding 2022-002: Material Weakness in Internal Controls over Compliance with Period of Performance Criteria and Condition: Per 2 CFR section 200.303, a non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. The Salvation Army Greater Cincinnati, Ohio Area Units did not have effective controls in place to verify that costs were being charged to the award in the correct period of performance. Context: During the testing of disbursements for period of performance, the auditor discovered several disbursements that did not have approval by an individual knowledgeable about period of performance grant requirements. Cause: Turnover within The Salvation Army Greater Cincinnati, Ohio Area Units team caused there to be reduced effectiveness in controls over grant costs review and assignment to the appropriate grant period. Effect: If controls are not in place to ensure the correct adherence to period of performance compliance, then there could be misuse of federal funding. Repeat Finding: This is not a repeat finding. Recommendation: We recommend The Salvation Army Greater Cincinnati, Ohio Area Units establish effective controls and training to ensure adherence to compliance requirements, such as review for proper grant period when recording transactions and creating monthly reimbursement requests. View of responsible officials: The Salvation Army Greater Cincinnati, Ohio Area Units agrees with the finding and will implement the recommendation.