Finding 1221393 (2024-005)

FINDING: 2024-005 Allowable Costs and Cost Principles; Cash Management Federal Agency: U.S. Department Housing and Urban Development Federal Program: Economic Development Initiative, Community Project Funding, and Miscellaneous Grants Assistance Listing # 14.251 Award Period: March 9, 2022 through August 31, 2030 Type of Finding: Material Weakness in Internal Control Over Compliance Criteria: The Village should have an allowable costs policy that adheres to the requirements of the Uniform Guidance Condition: The Village initially claimed Federal Expenditures for this grant for costs that had already been submitted for a prior FEMA grant. Village subsequently re-submitted vouchers for eligible costs. Questioned Costs: None Context: The Village is reviewing its allowable costs process to ensure they do not double claim federal expenditures for subsequent federal programs. Cause: The Village has not implemented an effective system of internal controls over allowable costs and cash management to ensure costs are not double claimed for Federal Grants. Effect: The Village could be out of compliance for allowable costs claimed and cash management for Federal Grants. Repeat Finding: The finding is new in the current year. Recommendation: The Village should continue to evaluate its process to ensure they are in accordance with Uniform Guidance. Views of Responsible Officials and Planned Corrective Actions: The Village is currently reviewing its policies and procedures to ensure that it follows Uniform Guidance Allowable Costs Standards.