Finding Text
2019-004 Finding – (Housing Choice Voucher– (14.871)) During our review of cost principles and allocation of costs it was noted that the Authority does not have a documented Cost Allocation Plan .
Criteria – Cost allocation plans developed by the Authority should have sufficient documentation to substantiate the basis for how costs are allocated among the different programs and related parties.
Effect of Condition – Due to the lack of full documentation to substantiate the basis for cost allocation, the amounts allocated among the programs and related parties could potentially be materially misstated.
Cause of Condition – Cost allocation plans were developed without fully documenting procedures and methods used in determining allocation percentages.
Recommendation – We recommend that the Authority document and adopt a plan that is in accordance with Appendix IV of the 2 CFR 200 regulation.
PHA Response and Corrective Action Plan – The agreement will be completed and on file as the Authority has already presented it to the board.
PHA Contact and Resolution Date
Rosalind Natale, March 31, 2020