Finding 1153549 (2024-002)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2025-09-19

AI Summary

  • Core Issue: The Authority lacks proper time and effort documentation for payroll costs allocated to federal grants.
  • Impacted Requirements: This violates 2 CFR Part 200, which mandates accurate tracking of time for individuals charged to federal awards.
  • Recommended Follow-Up: The Authority should create a system to accurately track actual hours worked on federal programs to ensure compliance.

Finding Text

Time and Effort Documentation Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Numbers: 14.871 and 14.879 Federal Award Identification Number and Year: W193 - 2024 Award Period: January 1, 2024 – December 31, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires time and effort documentation for all individuals whose time is coded to the federal grants. Condition: During our testing we noted that the Authority is allocating payroll costs based on percentages and did not have time and effort documentation tracking for the full year that supported percentages used. Questioned Costs: None Context: During our testing of payroll, it was noted that spreadsheet documenting actual hours for various programs was not updated for the full year. Cause: The Authority has been using allocation percentage determined during prior year which they believe to be reasonable. Effect: Noncompliance with HUD requirements. Repeat Finding: No Recommendation: We recommend, the Authority develop a method to track actual time spent on various programs to support time allocated to federal award programs. Views of Responsible Officials: There is no disagreement with the audit finding.

Corrective Action Plan

Time and Effort Documentation Corrective Action Plan (CAP): Recommendation: We recommend, the entity develop a method to track actual time spent on various programs to support time allocated to federal award programs. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: The Authority will verify that actual time is tracked to comply with the requirements. Name of the contact person responsible for corrective action: Nicole Benson Planned completion date for corrective action plan: December 31, 2025

Categories

Allowable Costs / Cost Principles HUD Housing Programs Significant Deficiency

Other Findings in this Audit

  • 1153546 2024-001
    Material Weakness Repeat
  • 1153547 2024-001
    Material Weakness Repeat
  • 1153548 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $1.84M
14.879 Mainstream Vouchers $457,802
14.872 Public Housing Capital Fund $72,019
14.850 Public Housing Operating Fund $44,216
14.896 Family Self-Sufficiency Program $34,769