Finding Text
Department: United States Department of Housing and Urban Development Program Name: Emergency Solutions Grant Program Federal Assistance Listing Number: 14.231 Significant deficiency – Subrecipient monitoring Criteria: Any amendment to the budget in the subgrantee agreement greater than 10% must be approved in writing by the Organization and the subgrantee. Condition: While performing our audit of the Organization’s subrecipient monitoring, we noted three instances where the budget was increased with no formal written documentation. Cause: Due to the tight timeframe of expenditure deadlines at the state, several subgrantees relinquished funds to other subgrantees changing the amount of the subgrants but not the amount of the State grant to the Organization. Effect: Noncompliance may impact future funding from federal and state awarding agencies. Questioned Costs: None. Repeat Finding: No Recommendation: We recommend the Organization ensure they have written documentation and approval of any changes in the subgrantee budgets. View of Responsible Official: We agree with this finding and will document approval for changes in budgets with subgrantees.