Finding 392085 (2020-003)

2020-003 Eligibility U.S. Department of Housing and Urban Development - CFDA 14.537 COVID-19 Eviction Protection Grant Program Condition: The Organization did not have an effective internal control system in place in regard to internal controls over compliance for eligibility. Four of 18 applicants tested had no supporting documentation. Criteria: 2 CFR 200 requires that internal controls over compliance exist to ensure that the Organization complies with the requirements for eligibility. Effect of Condition: $11,703 of expenditures of $50,634 tested are considered known questioned costs due to not maintaining supporting documentation. Cause of Condition: The Organization experienced personnel changes within key positions, which left the Organization unable to properly maintain documentation. Recommendation: The Organization should implement an internal control system that includes the maintenance of supporting documentation. Management Response: See corrective action plan on page 22.