Finding Text
Finding Number: 2024-003 Federal Program: CDBG – Entitlement Grants Cluster Federal Award Identification Number and Year: B-22-MC-39-0001, 2024 Assistance Listing Number (ALN): 14.218 Federal Awarding Agency: Department of Housing and Urban Development Pass-through Entity: None Repeat Finding: No Material Weakness and Noncompliance – Period of Performance Criteria: A non-Federal entity may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance and any costs incurred before the Federal awarding agency or pass-through entity made the Federal award that were authorized by the Federal awarding agency or pass-through entity sections 2 CFR 200.308, 200.309, and 200.403(h). A period of performance may contain one or more budget periods. Condition: The City charged costs that were incurred prior to the beginning of the period of performance of the grant. Questioned Costs: Total of $44,198 Identification of How Questioned Costs Were Computed: Total known questioned costs of $22,110, and total projection of $22,088 for a total of $44,198. Context: During testing, we identified three operational journals with transactions that were incurred outside of the period of performance of the grant. The requirement is outlined in the funding approval/agreement and applicable guidelines referenced above. Cause and Effect: The City did not have internal controls in place to ensure that only costs that occurred within the period of performance were charged to grant. As a result, the City charged costs that were incurred prior to the start of the grant’s period of performance. Recommendation: The City should implement controls and processes to ensure costs are charged within the appropriate grant period. Views of Responsible Officials and Corrective Action Plan: See Corrective Action Plan.