Finding Text
Finding No.: 2022-002
Federal Agency: U.S. Department of Housing and Urban Development (HUD)
AL Program: 14.231 Emergency Solutions Grant Program
Federal Award No.: SW20-SW-66-0001
Area: Special Tests and Provisions – Obligation, Expenditure and
Payment Requirements
Questioned Costs: $0
Criteria:
In accordance with applicable special tests and provisions for obligation, expenditure, and
payment requirements, the recipient must pay each subrecipient for allowable costs within 30
days after receiving the subrecipient’s complete payment request.
Condition:
For all (or 100%) of the Program’s subrecipients, we noted payments that were either 3 or 7 days
delayed after the allowable 30-day payment period.
Cause:
GHURA did not effectively implement monitoring controls over compliance with applicable
special tests and provisions for obligation, expenditure, and payment requirements.
Effect:
GHURA is in noncompliance with applicable special tests and provisions for obligation,
expenditure, and payment requirements. No questioned cost is reported as the late payments are
not considered improper payments.
Recommendation:
Responsible personnel should implement monitoring controls over compliance with applicable
special tests and provisions for obligation, expenditure, and payment requirements. Upon the
receipt of a payment request from a subrecipient, responsible personnel should immediately
commence the necessary reviews and processing of payments within time frames that are
sufficient to enable the release of checks within 30 days.
Views of Responsible Officials:
GHURA agrees with the recommendation to review and process payment requests from
subrecipients within the 30-day time frame.