Finding 1174707 (2025-004)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2025
Accepted
2026-02-20

AI Summary

  • Core Issue: The Agency failed to keep necessary documentation for disbursements, impacting compliance with federal guidelines.
  • Impacted Requirements: Costs must be documented and approved as per Uniform Guidance (2 CFR 200.403).
  • Recommended Follow-Up: Implement policies to ensure proper documentation and approval processes for all expenses.

Finding Text

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Continuum of Care Program Assistance Listing Number: 14.267 Federal Award Identification Number: IL178L5T172302 - 2024 IL0315L5T142316 - 2024 IL1651L5Y142305 - 2024 IL1780LST172201 - 2023 IL1651L5Tl42204 - 2023 IL0315LST142215 – 2023 Award Periods: August 1, 2023 – July 31, 2024; August 1, 2024 – July 31, 2025; July 1, 2024 – June 30, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria: Per Uniform Guidance (2 CFR 200.403) costs charged to federal awards must be 1) adequately documented with supporting invoices and receipts and reviewed and approved by authorized personnel prior to payment. Condition: The Agency did not retain documentation supporting the disbursements as well as the control over those disbursements. Questioned Costs: None Context: The Agency did not retain documentation supporting the disbursements as well as the control over those disbursements and the propriety of the expenses charged to the grant cannot be verified due to the change in invoice management systems during the fiscal year for six items tested. Cause: Unknown Effect: Inability to maintain proper supporting documentation over expenses incurred could lead to unallowable costs being reimbursed under the grant. Repeat Finding: This finding is not a repeat finding. Recommendation: CLA recommends the Agency follow established policies to maintain supporting documentation for expenses incurred including their review and approval. Views of Responsible Officials: There is no disagreement with this audit finding.

Corrective Action Plan

Recommendation: CLA recommends the Agency follow established policies to maintain supporting documentation for expenses incurred including their review and approval. Explanation of disagreement with audit finding: There is no disagreement with this finding. Action taken in response to finding: We have established a policy to maintain our supporting documentation in our expense management software. We lost our access to Concur when we terminated the contract in March 2025. This finding is related to the Concur system, which we have no access to. Going forward we have the Ramp expense management software that retains all the relevant supporting documentation. Name of the contact person responsible for corrective action: Dhiren Shah, CFO Planned completion date for corrective action plan: Completed as of January 1, 2025 for all future transactions, implemented via Ramp Software.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 1174704 2025-001
    Material Weakness Repeat
  • 1174705 2025-002
    Material Weakness Repeat
  • 1174706 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.267 CONTINUUM OF CARE PROGRAM $910,465
14.261 NATIONAL HOMELESS DATA ANALYSIS PROJECT (NHDAP) $476,346
93.959 BLOCK GRANTS FOR PREVENTION AND TREATMENT OF SUBSTANCE ABUSE $361,616
93.667 SOCIAL SERVICES BLOCK GRANT $226,489
93.276 DRUG-FREE COMMUNITIES SUPPORT PROGRAM GRANTS $98,826
93.569 COMMUNITY SERVICES BLOCK GRANT $18,912