Finding Text
Finding 2023-03 - Allowable Costs Requirement Significant Deficiency in Internal Controls over Compliance and Compliance Identification of the federal program(s): Assistance Listings program titles and numbers: 14.228 Community Block Development Grant (CBDG-CV) Federal award identification number: 14.228: Ohio Department of Development (B-D-22-1AE-4) Name of the federal agencies: 14.228 Department of Housing and Urban Development Name of the applicable pass-through entities: 14.228: Ohio Department of Development Criteria or specific requirement (including statutory, regulatory, or other citation): The 2 CFR section 200.303 of the Uniform Guidance requires that non-federal entities receiving federal awards establish and maintain internal control over the federal awards that provides reasonable assurance that the non-federal entity is managing the federal awards in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition: During the audit, it was noted that SAOP was unable to provide payment support documentation for 11 non-payroll transactions. Cause: The related payment support is missing due to the mishandling by previous personnels. Effect or potential effect: Without adequate internal controls to ensure that all charges to the federal program are properly reviewed for allowability, SAOP could be noncompliant with the allowability requirement and might request funds for unallowed costs. Questioned costs: $3,692 Context: Payment supports for non-payroll charges were not provided. Identification as a repeat finding, if applicable: Not applicable Recommendation: We recommend that SAOP establish a procedure to securely store paymentsupports, ensuring all transactions are supported by proper documentation. Views of responsible officials: Management agrees with the finding and recommendation.