Finding 1214695 (2025-004)

Allowable Costs Federal Agency: U.S. Department of Health and Human Services Federal Program Name: Homeless Challenge Grant Assistance Listing Number: 93.558 Federal Award Identification Number and Year: IP004 - 2025 Pass-Through Agency: Palm Beach County Board of County Commissioners Award Period: July 1, 2024 – June 30, 2025 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria: Payroll and other costs charged to a federal award must be supported by adequate documentation demonstrating that the costs were incurred, are allowable, and are allocable to the program in accordance with the terms of the grant agreement and federal cost principles. Condition: During our testing, we noted the Organization did not have adequate documentation to support the total amount of payroll expenses requested for reimbursement under the Homeless Challenge Grant. Questioned costs: $30,730 of the $60,782 payroll expenses requested for reimbursement could not be substantiated with supporting documentation. Context: The grant allows payroll expenses to be allocated evenly throughout the grant period. However, the Organization was unable to provide supporting documentation for $30,730 of the $60,782 requested for reimbursement for payroll costs during the audit period. Cause: The Organization lacked adequate documentation and review controls to ensure payroll expenses charged to the grant were fully supported and properly substantiated. Effect: Without adequate documentation, payroll costs may be requested for reimbursement that were not actually incurred or are otherwise unallowable, which could result in disallowed costs and jeopardize current or future funding. Repeat finding: No Recommendation: Management should ensure that all payroll costs charged to the program are supported by adequate documentation demonstrating that the costs were incurred and allocable to the Homeless Challenge Grant. Views of responsible officials: There is no disagreement with the audit finding.