Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Opportunities for Persons with AIDS
Assistance Listing Number: 14.241
Pass-Through Agency: City of Cleveland Department of Public Health
Pass-Through Number(s): 5005SG2022-166, 5005SG2023-143, 5005SG2022-166, 5005SG2023-143
Award Period: September 1, 2022 through May 31, 2024
Type of Finding:
Significant Deficiency in Internal Control over Compliance
Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Award requires compliance with the provisions of cash
management. The Organization should have internal controls designed to ensure compliance with
those provisions.
Condition: During our testing, we noted the Organization did not have adequate internal controls
designed to ensure expenses reimbursed by the grantor were incurred and paid by the Organization.
Context: During cash disbursements testing, two of seven expenses charged to the grant were not
recorded as expenses by the Organization. These disbursements, while they appear to be for eligible
costs and activities, were recorded as expenses and paid by AIDS Healthcare Foundation, the parent
company.
Cause: The Organization was not reconciling their general ledger to the draw requests.
Effect: The Organization was reimbursed for expenses they did not incur or pay.
Repeat Finding: No
Recommendation: We recommend the Organization design controls to ensure the general ledger
detail for each grant is reconciled to the monthly draw requests before they are submitted to the grantor
for reimbursement.
Views of responsible officials: ATGC will delay the billing of any expense reimbursements until the
general ledger activity has been reconciled ensuring all related expenses properly allocated within the
ATGC General Ledger.