Finding 1186860 (2025-002)

#2025-002 – Wage Allocations Federal Agency: Department of Housing and Urban Development (HUD) Federal Program Name: Continuum of Care Assistance Listing Number: 14.267 Type of Finding: • Significant deficiency in internal control over compliance Criteria: Wages should be allocated to federal and state programs on the basis of time spent in each program. Condition: 1 out of 40 payroll transactions reviewed had differences between the wages that were charged to the grant and the wages that should have been charged to the grant based on the number of hours worked. Questioned Costs: $1,540. Cause: Payroll software coded manager time as admin time instead of the specific grant funding code. Effect: Wages could be charged to the wrong federal awards and not detected and corrected. Recommendation: We recommend that management review payroll software inputs and outputs for accuracy prior to completing grant claims. Response: HALO’s management concurs with this finding.