Finding Text
Program: U.S. Department of Treasury; Passed through City of Huntsville; COVID-19 Emergency Rental Assistance Program, Assistance Listing #21,023, for 7/1/2021 through 6/30/2022 Criteria: The Uniform Guidance in 2 CFR Section 200.303 requires that non-Federal entities receiving Federal Awards establish and maintain internal control designed to reasonably ensure compliance with Federal Statutes, regulations, and the terms and conditions of the Federal award. Condition: The Organization was unable to replicate exact payroll expenses that were reported to the City of Huntsville for the program. This is due to the program being new and the expediated nature of the program?s initiation. No fraud or over reimbursement is suspected related to payroll reporting issues for the program. Context: This is a condition identified per review of the Organization?s compliance with specified requirements using a statistically valid sample. Effect: Without adequate controls in place to ensure payroll is properly reported, the reimbursements requested for the program could be over-stated or under-stated. Cause: Working from one database clients were assigned to one federal program and time was recorded accordingly. Subsequently clients were determined to qualify for a lower income program and timesheets were not retroactively adjusted to reflect the program change. Repeat of a Prior-Year Finding: No Recommendation: The payroll paperwork for each month should be retained and verified to match what is reported to the City. View of Responsible Officials: The Organization?s management agrees with this finding.