Finding 1215148 (2025-009)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2025
Accepted
2026-05-20

AI Summary

  • Issue: The Project faced unsupported costs, incorrect charges, and duplicate payments totaling $21,082.78.
  • Requirements: Uniform Guidance mandates that all costs must be properly supported, allowable, and allocated to the Federal program.
  • Follow-up: Improve controls over invoice reviews, ensure proper documentation, and confirm charges are appropriate before making payments.

Finding Text

Condition: The Project incurred unsupported costs, costs charged to the incorrect entity, and duplicate payments totaling $21,082.78. Criteria: Uniform Guidance requires that costs be properly supported, allowable, and allocable to the Federal program. Cause: Controls over disbursements were not effectively designed or implemented. Effect: Federal funds were used for unallowable or unsupported purposes. Questioned Costs: $21,082.78. Recommendation: Strengthen controls over invoice review, ensure proper documentation, and verify charges are allocable to the Project prior to payment.

Corrective Action Plan

Management will perform a line-item review of all exceptions identified, obtain missing documentation to support allowability and allocability, reclassify costs to non-federal cost centers where appropriate, or reimburse the program for unsupported costs. A reconciliation schedule will be prepared identifying each exception and resolution method. Controls will be strengthened by requiring complete documentation, implementing a multi-level review process, establishing property-specific coding procedures, and training staff on federal allowability requirements.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 1215149 2025-010
    Material Weakness Repeat
  • 1215150 2025-011
    Material Weakness Repeat
  • 1215151 2025-012
    Material Weakness Repeat
  • 1215152 2025-013
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.181 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES $1.28M
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $90,551