Finding No.: 2025-011 Identification of Federal Program: Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: 14.267 Continuum of Care Program Federal Award No.: GU044L9C002300, GU00377L9C002302, GU0044L9C02300, GU0026L9C002305, GU0011L9C002314 Area: Period of Performance Criteria or specific requirement (including statutory, regulatory or other citation): A recipient may charge only allowable costs incurred during the approved budget period of a federal award’s period of performance. Conditions: 1. Out of eight expenditures tested totaling $15,536 from a population of $48,657 (out of total expenditures of $1,053,179), four items (50%) were charged to the federal award prior to the start of the approved period of performance. Federal Award No. Payroll Pay period Ended Pay Check date POP Start Date Expenditures Questioned Costs GU0044L9C002300 11/16/24 11/22/24 12/01/24 $1,961 $1,961 GU0044L9C002300 11/02/24 11/08/24 12/01/24 1,697 1,697 GU0044L9C002300 11/02/24 11/08/24 12/01/24 4,072 4,072 GU0044L9C002300 10/19/24 10/25/24 12/01/24 3,455 3,455 $11,185 $11,185 2. Out of 40 manual adjustment transactions tested totaling $56,036 from a population of $218,515 (out of total expenditures of $1,053,179), three items (8%) were manually transferred and charged to the federal award prior to the start of the approved period of performance. Federal Award No. Payroll Pay period Ended Pay Check date POP Start Date Expenditures Questioned Costs GU0037L9C002302 10/19/24 10/25/24 01/01/25 $ 54 $ 54 GU0044L9C002300 11/16/24 11/22/24 12/01/24 824 824 GU0044L9C002300 10/05/24 10/11/24 12/01/24 2,917 2,917 $3,795 $3,795 Finding No.: 2025-011, continued Conditions, continued: 3. Out of 40 manual adjustment transactions tested totaling $56,036 from a population of $218,515 (out of total expenditures of $1,053,179), one item (3%) was manually transferred and charged to a federal award after the approved period of performance ended: Federal Award No. Payroll Pay period Ended Pay Check date POP End Date Expenditures Questioned Costs GU0011L9C002314 10/16/24 08/01/25 09/30/23 $ 837 $ 837 $ 837 $ 837 4. Out of 38 transactions tested totaling $294,156 from a population of $493,625 (out of total expenditures of $1,053,179), one item (3%) was charged to the federal award after the approved period of performance. Federal Award No. Payroll Pay period Ended Pay Check date POP End Date Expenditures Questioned Costs GU0026L9C002305 06/14/25 06/20/25 12/31/24 $ 43 $ 43 $ 43 $ 43 Cause: The GHURA Community Planning Division did not implement adequate monitoring controls to ensure compliance with period of performance requirements. GHURA’s internal control policies and procedures are not sufficiently designed to ensure the timely reclassification and liquidation of obligations within the budget period. Effect or potential effect: GHURA is in noncompliance with applicable period of performance requirements. Questioned costs: $15,860 Identification as a repeat finding: Not applicable. Finding No.: 2025-011, continued Recommendation: Responsible personnel should enforce monitoring controls to ensure compliance with period of performance requirements. The GHURA Community Planning Division should implement formal controls, including standardized timelines and a tracking system for payroll reclassifications and expenditure processing, to prevent the accumulation of unprocessed reimbursements. Views of Responsible Officials: Management partially concurs with the finding. Refer to Management’s position as outlined in the Corrective Action Plan. Conclusion: The finding is sustained as the condition existed during the audit period and was only corrected after management identified the issue completed the corrective reclassification in the subsequent fiscal year.