Finding 1157903 (2024-003)

Double reported expenses (Material Weakness) Criteria: CFR 200 § 200.328. The recipient or subrecipient must submit timely and accurate financial reports as required by the Federal award. Condition: Expenses were used for both a draw request of funds and reporting of funds for separate federal funding sources. Cause: Tracking of expenditures at the project level and not against the grant funding and lack of segregation of duties related to grant reporting. Effect: Reporting for the federal program was not accurate based on the expenses used. Questioned Costs: $75,827 Perspective: Federal expenditures were found to be used for reporting purposes of the 21.027 funds but then requested in a draw process for the HOME loan expenses (CFDA 14.239). The funding allowed expenditures from the same projects and the timing of the funding overlapped. The Organization was able to identify additional expenditures for the 21.027 funds to cover the questioned costs. Repeat Finding: No Recommendation: We recommend expenditures be tracked against grant funding instead of only the project level, separate preparation and review of reporting, and additional review and oversight of those charged with governance. Views of Responsible Officials: Management acknowledges the control weaknesses as described above and plans to develop proper policies and procedures in order for the funds to be correctly used for each grant source.