Finding 1213922 (2024-002)

FINDING NO. 2024-002 – Unsupported Costs Federal Program: Continuum of Care Program Assistance Listing Number: 14.267 U.S. Department of Health and Human Services Significant Deficiency Criteria: Management is responsible for the maintenance of accounting records adequate to support compliance with program requirements. Condition: During our testing of purchases made under the Continuum of Care program, we tested 40 items. We noted that two of those items had no supporting invoices. Questioned Costs: Known and likely questioned costs below reportable amount. Context: A credit card became compromised and was deactivated in the accounting system. When the card was deactivated, all associated receipts and invoices were purged and could not be recovered. This card was only used for this program, and total projected error from the sample was below reportable thresholds. This was not corrected from the previous audit due to the timing of the performance of the 2023 audit. Effect: Documentation supporting the transactions could not be obtained. Cause: The settings in the accounting software were inappropriate for proper data retention. Identification as a repeat finding: N/A Recommendation: We recommend management review documentation procedures in their accounting software to ensure that all documentation is retained as intended even in cases of data breaches, including considering backup storage. Views of responsible officials and planned corrective actions: Management is in agreement with recommendations and has begun reviewing backup procedures.