Finding 25494 (2022-002)

- Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-20

AI Summary

  • Core Issue: Incomplete supporting documentation for reports submitted to granting agencies, affecting data accuracy.
  • Impacted Requirements: Non-compliance with 2 CFR Part 200 administrative requirements and grant agreement obligations.
  • Recommended Follow-Up: Enhance protocols for documentation management and implement independent verification controls before report submissions.

Finding Text

Emergency Rental Assistance Program, United States Department of the Treasury Federal Assistance listing #21.023. Condition: Three of six quarterly reports and eight of ten monthly reports submitted to the granting agencies contained data that could not be substantiated through supporting documentation. Criteria: In compliance with the 2 CFR Part 200 administrative requirements subpart B - General Provisions ? 200.100 the grantee must follow administrative requirements for grant and cooperative agreements, including the requirements for Federal awarding agency management of Federal grant programs before the Federal award has been made, and the requirements Federal awarding agencies may impose on non-Federal entities in the Federal award. Per the grant agreement between the Authority and granting agencies, the Authority "agrees to maintain Project documents, records and accounts, personnel and financial records, and submit such financial and performance reports as are required by assuring a proper accounting of all Project funds, as required by the regulations adopted pursuant to the Act. Methods used to determine costs assigned to the Project must conform to 2 CFR Part 200 and must not differ substantially from the methods used by Authority to determine costs for other aspects of its operations or programs." Cause: The influx of new funding and programs has caused the Authority's staff to be overwhelmed and the protocols to retain backup information not to be properly implemented. Ultimately, the cause is rooted in the lack of organization and proper controls in place to maintain supporting documentation. Effect: The lack of supporting documentation to substantiate reports submitted to the granting agency, data could be inaccurate which could result in the Authority?s loss of future grant funding. Recommendation: We recommend management strengthen current protocols for maintaining supporting documentation for all reports submitted to granting agencies which should include the implementation of controls over reporting that would prevent report submissions until all supporting documentation has been verified by an individual independent of the preparation and filing of the report(s).

Corrective Action Plan

Management?s Response/Planned Corrective Action: This item was an audit finding on the 2020/21 audit report. Upon identification of the issue as of March 2022, we created additional controls as outlined in the corrective action plan submitted with the audit at that time. We believe this finding is primarily related to the months prior to us being made aware of the issue. We have made the necessary corrections and have been maintaining proper backup for the reports since the initial finding. Heather Kimmel, Assistant Executive Director is responsible for the corrective action plan.

Categories

Reporting Matching / Level of Effort / Earmarking Special Tests & Provisions

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $4.26M
14.850 Public and Indian Housing $4.22M
14.267 Continuum of Care Program $3.99M
10.415 Rural Rental Housing Loans $2.62M
14.871 Section 8 Housing Choice Vouchers $1.28M
14.872 Public Housing Capital Fund $977,536
10.427 Rural Rental Assistance Payments $389,681
14.241 Housing Opportunities for Persons with Aids $262,059
14.869 Title Vi Federal Guarantees for Financing Tribal Housing Activities $257,204
93.917 Hiv Care Formula Grants $185,770
14.879 Mainstream Vouchers $183,065
21.023 Emergency Rental Assistance Program $90,511
14.870 Resident Opportunity and Supportive Services - Service Coordinators $45,698
93.558 Temporary Assistance for Needy Families $44,500
93.674 John H. Chafee Foster Care Program for Successful Transition to Adulthood $30,000