Finding Text
Federal Agencies: Department of Housing and Urban Development Federal Assistance Listing Numbers: 14.267 Program: Continuum of Care Program Award/Pass-Through Entity Identifying Numbers: CA0802L9D012416, CA0802L9D012315, CA1348L9D012410, CA1348L9D012309, CA1510L9D012409, CA1510L9D012308, CA1883L9D012405, CA1883L9D012304, SIHI-25-07, HHI-26-08, SIHI-25-18, HHI-26-11 Criteria: Where a funding period is specified, a recipient may charge to the grant only allowable costs resulting from obligations incurred during the funding period and any pre-award costs authorized by the Federal awarding agency. Unless the Federal awarding agency authorizes an extension, a recipient shall liquidate all obligations incurred under the award no later than 90 calendar days after the funding period or the date of completion as specified in the terms and conditions of the award or in agency implementing instructions. Condition: We noted that the Village allocated expenditures that were incurred prior to the start of the funding period to Continuum of Care Program during 2025. During our testing, we noted instances of costs that were incurred prior to the start of the applicable funding periods and were not approved in accordance with §200.308. • 3 out of 40 samples selected for testing had costs claimed in the incorrect grant period. Cause: Due to the manual nature of the allocation process, the Village misapplied certain costs to grant awards. This resulted in certain costs being reported and claimed in the wrong grant period, leading to inaccuracies in the allocation of expenditures across periods of performance. Effect or Potential Effect: Without adequate controls in place to ensure costs are reported in the proper period of performance, the Village could incorrectly charge expenditures to the federal programs. Questioned Costs: Known Questioned Costs: $630 Likely Questioned Costs: $37,148 Context: This is a condition identified per review of the Villages compliance with specified requirements not using a statistically valid sample. Total costs near grant cutoff periods were $1,445,942. Repeat Finding: 2024-004 Recommendation: We recommend that only costs incurred during the appropriate funding period be charged, and that this be appropriately documented and reviewed. Views of Responsible Officials: Management agrees with the finding. Management is in the process of implementing new processes and procedures to reduce manual errors.