Finding Text
Federal Agencies: Department of Housing and Urban Development and Department of Health and Human Services Federal Assistance Listing Numbers: 14.267, 93.224 & 93.527 Program: Continuum of Care Program, Health Center Program Cluster, COVID-19 Health Center Program Cluster Award/Pass-Through Entity Identifying Numbers: CA0802L9D012214, CA0802L9D012315, CA1348L9D012208, CA1348L9D012309, CA1510L9D012207, CA1510L9D012308, CA1883L9D012203, CA1883L9D012304, HHI-24-09, SIHI-25-07, HHI-24-04, SIHI-25-18, H80CS10606-16-00, H80CS10606-17-04, H80CS10606-17-05, H8GCS48224, H8L50900-01-00, H8NCS53911-01-04 Criteria: Where a funding period is specified, a recipient may charge to the grant only allowable costs resulting from obligations incurred during the funding period and any pre-award costs authorized by the Federal awarding agency. Unless the Federal awarding agency authorizes an extension, a recipient shall liquidate all obligations incurred under the award no later than 90 calendar days after the funding period or the date of completion as specified in the terms and conditions of the award or in agency implementing instructions. Condition: We noted that the Village allocated expenditures that were incurred prior to the start of the funding to Continuum of Care Program and Health Center Program Cluster during 2024. During our testing, we noted instances of costs that were incurred prior to the start of the applicable funding periods and were not approved in accordance with §200.308. • For Continuum of Care Program: o 1 out of 60 samples selected for testing had costs claimed in the incorrect grant period. • For Health Center Program Cluster: o 5 of the 74 samples selected for testing had costs claimed in the incorrect grant period. Cause: Due to the manual nature of the allocation process, the Village misapplied the prorated days at the end of certain pay periods. Specifically, the portion of payroll costs attributable to the final days of a pay period was assigned to the subsequent grant period, rather than to the correct, preceding period of performance. This resulted in certain payroll costs being reported and claimed in the wrong grant period, leading to inaccuracies in the allocation of expenditures across periods of performance. Additionally, the client charged rental assistance expense to a subsequent grant period. As a result, these costs were claimed in the incorrect grant period, leading to inaccuracies in the allocation of expenditures across periods of performance. Effect or Potential Effect: Without adequate controls in place to ensure costs are reported in the proper period of performance, the Village could incorrectly charge expenditures to the federal programs. Questioned Costs: Continuum of Care Program: None above the $25,000 reporting threshold. Health Center Program Cluster: None above the $25,000 reporting threshold. Context: This is a condition identified per review of the Villages compliance with specified requirements not using a statistically valid sample. Total costs under the Continuum of Care Program were $5,000,960. Total costs under the Health Center Program Cluster were $1,682,732. Repeat Finding: 2023-008 Recommendation: We recommend that only costs incurred during the appropriate funding period be charged, and that this be appropriately documented and reviewed. Views of Responsible Officials: