Finding Text
Finding 2023-005Period of Performance 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 200.403 of the Uniform Guidance requires that costs must be incurred during the approved period of performance to be allowable under a federal award. Expenses incurred outside this period are not compliant with federal regulations and the terms of the award. Condition: During our audit, we noted six transactions with charges not within the fiscal year 2023. Cause: This error is due to the mishandling by previous personnel. Effect or potential effect: The absence of proper period of performance controls increases the risk of unallowable costs being charged to the federal award, which could result in potential disallowance of these expenses by federal award agencies. Questioned costs: $2,687 Context: SAOP’s policies and procedures do not require monitoring of the proper period of performance. Identification as a repeat finding, if applicable: Not applicable Recommendation: We recommend that SAOP establish more robust internal controls to guarantee that all non-payroll charges are incurred within the authorized period of performance. This should involve consistent monitoring of grant periods, providing staff training on the period of performance requirements, and conducting periodic reviews of expenditure documentation. Views of responsible officials: Management agrees with the finding and recommendation.