Finding Text
2024 – 002
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Continuum of Care Program
Assistance Listing Number: 14.267
Federal Award Identification Number and Year: Multiple
Pass-Through Agency: N/A
Pass-Through Number(s): N/A
Award Period: January 1, 2024 – December 31, 2024
Type of Finding: Significant Deficiency in Internal Control over Compliance
Criteria or specific requirement: Uniform Grant Guidance (45 CFR 75.309(a)) notes a non-Federal entity may charge to the Federal award only allowable costs incurred during the period of performance (except as described in § 75.461) and any costs incurred before the HHS awarding agency or pass-through entity made the Federal award that were authorized by the Federal awarding agency or pass-through entity. Funds available to pay allowable costs during the period of performance include both Federal funds awarded and carryover balances.
Condition: During our testing, we identified 2 expenses charged to the next grant period, instead of the correct period of the grant.
Questioned costs: $16.44
Context: During our testing, we identified 2 expenses that were inadvertently entered into the wrong accounting period due to a system issue which caused the expenses to be billed to the wrong grant period.
Cause: The Organization’s system encountered an issue with the sync tool that is used to integrate mileage data from the organization’s payroll system.
Effect: The Organization was not in compliance with the period of performance requirement since costs were charged to the grant prior to the start of the period of performance.
Repeat Finding: No
Recommendation: We recommend the Organization evaluate its procedures and implement an additional control to ensure costs are charged to the grant during the period of performance.
Views of responsible officials: There is no disagreement with the audit finding. This was an exception and controls have been put in place to ensure that this does not re-occur.