Finding 400687 (2023-002)

Material Weakness
Requirement
B
Questioned Costs
-
Year
2023
Accepted
2024-06-13

AI Summary

  • Issue: An architect was overpaid $168,300 due to duplicate payments for the same certification.
  • Requirements Impacted: Payments must be necessary and reasonable under federal guidelines (2 CFR part 200, subpart E).
  • Follow-up: Ensure all invoices are approved by the consultant before payment to prevent future errors.

Finding Text

2023-2 Allowable Cost Condition: We found 1 error in that architect certification #3 paid with check number 102 on June 30, 2023, was also paid with check number 104 resulting in an overpayment to the contractor in the amount of $168,300. Criteria: Costs must be necessary and reasonable for the performance of the Federal award and be allocable thereto under the principles in 2 CFR part 200, subpart E. Cause of Condition: Error paying invoices. Effect of Condition: Compliance violation. Recommendation: Invoice should only be paid after approval by the entity’s consultant. Client Response: The entity will work with its consultant to reach a resolution to the finding.

Corrective Action Plan

Recommendation: Invoice should only be paid after approval by the entity’s consultant. Client Response: The entity will work with its consultant to reach a resolution to the finding

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 977129 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.872 Public Housing Capital Fund $729,277
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $581,172
14.850 Public and Indian Housing $535,702