Finding Text
Finding 2023-006 Department: United States Department of Housing and Urban Development Program Name: Emergency Solutions Grant Program Federal Assistance Listing Number: 14.231 Material Weakness: Insufficient documentation Criteria: In accordance with Uniform Guidance, all federal grant expenditures must be adequately documented. The Organization should have internal controls designed to ensure (1) subrecipient documents supporting reimbursable expenditures and (2) reimbursement requests sent to grantors are maintained in an organized manner in a shared location. Condition: Not all documents requested were available for our review during the audit. Cause: Documents submitted by subrecipients to the Organization and reimbursement requests submitted to the grantor from the Organization were maintained by an employee that was subsequently terminated and the location of some files is unknown. Effect: There is a risk that pursuant to an audit performed by the grantor, costs without appropriate documentation could be disallowed. Questions Costs: Unknown Repeat Finding: No Recommendation: We recommend the Organization implement procedures to ensure sufficient supporting records are maintained for all grant expenses submitted for reimbursement. Response: The Organization agrees with the audit finding. There were gaps in information flow due to staff turnover. The Organization already has a process in place to maintain documentation in a logical manner with adequate access.