Finding Text
2022-003 REPORTING ALLOWABLE/ALLOCABLE COSTS Grantors: U.S Department of Housing and Urban Development / U.S. Treasury Award Names: Emergency Solutions Grant / Emergency Rental Assistance Award Year: Various Award Numbers: Various CFDA Numbers: 14.231 / 21.023 Criteria: Costs reported and submitted for reimbursement should be based on a cost allocation plan and agree to the underlying accounting records. Condition: During our audit testing, we noted cost allocations included on submitted grant reports did not reconcile directly back to what was allocated in the underlying accounting records (general ledger). Cause: No individuals at the Center were periodically performing reconciling and other activities which would have served to ensure the cost allocation plan and underlying accounting records were in line and consistent with what was being reported to grantors. Effect: The amount of allocated costs reported and reimbursed by grantors could not be readily traced back to the underlying accounting records (general ledger). Questioned Costs: None noted. Recommendation: The Center should implement controls to ensure all reporting and requests for reimbursements submitted to grantors reconcile with the underlying accounting records as allocated. Management?s Views and Corrective Action Plan: Management agrees with this finding and has outlined its resulting actions in a separately issued Corrective Action Plan.