Finding 370239 (2023-001)

Federal Agency: Department of Housing and Urban Development Federal Program Name: Continuum of Care Program Assistance Listing Number: 14.267 Federal Award Identification Numbers: MN0087L5K052114, MN0014L5K002114, MN0186L5K112110 Award Periods: 4/1/22-3/31/23; 7/1/22-6/30/23; 8/1/22-7/31/23 Type of Finding: • Material Weakness in Internal Control over Compliance • Other Matters Criteria or specific requirement: 2 CFR 200.1 defines period of performance as the total estimated time interval between the start of an initial Federal award and the planned end date. Costs recorded to a grant must not be incurred prior to the start of the period of performance unless authorized by the federal awarding agency. Costs recorded to a grant must also not be incurred after the period of performance. Condition: During our audit testing, we noted costs were charged outside of the period of performance for three different awards. Questioned costs: $5,645 Context: We tested 40 transactions from the beginning of the period of performance, noting 2 exceptions where grants were charged for costs incurred prior to the period of performance. We tested 40 transactions from the ending of the period of performance, noting 3 exceptions where grants were charged after the period of performance. Cause: Invoices were charged based on payment date instead of the incurred date. Effect: Grants were charged for costs outside the period of performance. Management repaid the questioned costs to the grantor during the audit. Repeat finding: Not a repeat finding Recommendation: We recommend the Organization put procedures in place to identify the performance period when charging invoices to grants, particularly during the start and end of the period of performance. Views of responsible officials: There is no disagreement with the audit finding.