Finding 1155173 (2024-008)

Material Weakness Repeat Finding
Requirement
G
Questioned Costs
-
Year
2024
Accepted
2025-09-24
Audit: 367408
Auditor: Bdo USA PC

AI Summary

  • Core Issue: The Village's internal controls failed to properly identify unallowable costs in the matching pool for federal funds.
  • Impacted Requirements: This situation violates the matching cost principles outlined in 24 CFR §578.73, risking future compliance and funding.
  • Recommended Follow-Up: The Village should improve policies and procedures to ensure only allowable costs are included in the matching pool.

Finding Text

Federal Agencies: Department of Housing and Urban Development Federal Assistance Listing Numbers: 14.267 Program: Continuum of Care Program 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 Criteria: The Uniform Guidance in 2 CFR §200.303 requires that non-Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statues, regulations, and the terms and conditions of the Federal award. Per 24 CFR §578.73(b): “Notwithstanding 2 CFR 200.306(b)(5), a recipient or subrecipient may use funds from any source, including any other federal sources (excluding Continuum of Care program funds), as well as State, local, and private sources, provided that funds from the source are not statutorily prohibited to be used as a match. The recipient must ensure that any funds used to satisfy the matching requirements of this section are eligible under the laws governing the funds in order to be used as matching funds for a grant awarded under this program.” Condition: We noted that the Village’s controls did not identify certain costs within the matching pool that were unallowable under the matching cost principles. However, the matching pool exceeded the required match, and management was able to fulfil the match without the unallowable costs in the pool. Cause: The Village did not have adequate policies and procedures in place to ensure that only allowable costs were included in the matching pool used to satisfy matching requirements. Potential Effect: Without adequate controls in place, the Village could utilize costs for matching requirements that are not in compliance with §578.73. This may impact the Village’s ability to meet the required matching threshold, result in repayment of funds, and could affect future funding. Questioned Costs: None. Context: The Village incurred total costs that exceeded the required match. As a result, they were able to offset any unallowable costs, while still meeting the required match and remaining in compliance at year end. Repeat Finding: Not a repeat finding. Recommendation: We recommend Village enhance their policies and procedures to ensure that only allowable costs are utilized to satisfy matching requirements. Views of Responsible Officials:

Categories

Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking Subrecipient Monitoring

Other Findings in this Audit

  • 1155108 2024-003
    Material Weakness Repeat
  • 1155109 2024-003
    Material Weakness Repeat
  • 1155110 2024-003
    Material Weakness Repeat
  • 1155111 2024-003
    Material Weakness Repeat
  • 1155112 2024-003
    Material Weakness Repeat
  • 1155113 2024-003
    Material Weakness Repeat
  • 1155114 2024-003
    Material Weakness Repeat
  • 1155115 2024-003
    Material Weakness Repeat
  • 1155116 2024-003
    Material Weakness Repeat
  • 1155117 2024-003
    Material Weakness Repeat
  • 1155118 2024-003
    Material Weakness Repeat
  • 1155119 2024-003
    Material Weakness Repeat
  • 1155120 2024-003
    Material Weakness Repeat
  • 1155121 2024-003
    Material Weakness Repeat
  • 1155122 2024-003
    Material Weakness Repeat
  • 1155123 2024-003
    Material Weakness Repeat
  • 1155124 2024-003
    Material Weakness Repeat
  • 1155125 2024-003
    Material Weakness Repeat
  • 1155126 2024-003
    Material Weakness Repeat
  • 1155127 2024-003
    Material Weakness Repeat
  • 1155128 2024-004
    Material Weakness Repeat
  • 1155129 2024-004
    Material Weakness Repeat
  • 1155130 2024-004
    Material Weakness Repeat
  • 1155131 2024-004
    Material Weakness Repeat
  • 1155132 2024-004
    Material Weakness Repeat
  • 1155133 2024-004
    Material Weakness Repeat
  • 1155134 2024-004
    Material Weakness Repeat
  • 1155135 2024-004
    Material Weakness Repeat
  • 1155136 2024-004
    Material Weakness Repeat
  • 1155137 2024-004
    Material Weakness Repeat
  • 1155138 2024-004
    Material Weakness Repeat
  • 1155139 2024-004
    Material Weakness Repeat
  • 1155140 2024-004
    Material Weakness Repeat
  • 1155141 2024-004
    Material Weakness Repeat
  • 1155142 2024-004
    Material Weakness Repeat
  • 1155143 2024-004
    Material Weakness Repeat
  • 1155144 2024-004
    Material Weakness Repeat
  • 1155145 2024-004
    Material Weakness Repeat
  • 1155146 2024-004
    Material Weakness Repeat
  • 1155147 2024-005
    Material Weakness Repeat
  • 1155148 2024-005
    Material Weakness Repeat
  • 1155149 2024-005
    Material Weakness Repeat
  • 1155150 2024-005
    Material Weakness Repeat
  • 1155151 2024-005
    Material Weakness Repeat
  • 1155152 2024-005
    Material Weakness Repeat
  • 1155153 2024-005
    Material Weakness Repeat
  • 1155154 2024-006
    Material Weakness Repeat
  • 1155155 2024-006
    Material Weakness Repeat
  • 1155156 2024-006
    Material Weakness Repeat
  • 1155157 2024-006
    Material Weakness Repeat
  • 1155158 2024-006
    Material Weakness Repeat
  • 1155159 2024-006
    Material Weakness Repeat
  • 1155160 2024-006
    Material Weakness Repeat
  • 1155161 2024-006
    Material Weakness Repeat
  • 1155162 2024-006
    Material Weakness Repeat
  • 1155163 2024-006
    Material Weakness Repeat
  • 1155164 2024-006
    Material Weakness Repeat
  • 1155165 2024-006
    Material Weakness Repeat
  • 1155166 2024-007
    Material Weakness Repeat
  • 1155167 2024-008
    Material Weakness Repeat
  • 1155168 2024-008
    Material Weakness Repeat
  • 1155169 2024-008
    Material Weakness Repeat
  • 1155170 2024-008
    Material Weakness Repeat
  • 1155171 2024-008
    Material Weakness Repeat
  • 1155172 2024-008
    Material Weakness Repeat
  • 1155174 2024-008
    Material Weakness Repeat
  • 1155175 2024-008
    Material Weakness Repeat
  • 1155176 2024-008
    Material Weakness Repeat
  • 1155177 2024-008
    Material Weakness Repeat
  • 1155178 2024-008
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.241 Housing Opportunities for Persons with Aids $1.74M
14.231 Emergency Solutions Grant Program $614,176
97.024 Emergency Food and Shelter National Board Program $178,640
97.008 Non-Profit Security Program $148,000
14.218 Community Development Block Grants/entitlement Grants $93,711
14.267 Continuum of Care Program $88,198
10.558 Child and Adult Care Food Program $85,773
93.224 Health Center Program (community Health Centers, Migrant Health Centers, Health Care for the Homeless, and Public Housing Primary Care) $71,391
64.033 Va Supportive Services for Veteran Families Program $63,032
93.526 Grants for New and Expanded Services Under the Health Center Program $56,722
93.527 Grants for New and Expanded Services Under the Health Center Program $12,600
45.129 Promotion of the Humanities Federal/state Partnership $10,000