Finding 404719 (2023-003)

Material Weakness
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2024-06-29

AI Summary

  • Answer: The Housing Authority lacks proper documentation and controls for payroll expenses charged to the federal program.
  • Trend: There is a consistent issue with verifying cost allocations, particularly regarding changes in hours worked.
  • List: Implement stronger controls to ensure accurate payroll expense allocation and maintain adequate documentation for federal program expenditures.

Finding Text

Expenditures charged to a federal program must be supported by adequate documentation and be reasonable and necessary for program operation. The Housing Authority has developed cost allocation plans in which a percentage of the Housing Authority’s expenses, such as payroll and benefit expenses, are charged to the federal program for administering the program. The Housing did not have controls in place to verify that costs allocated through the cost allocation plan were updated for changes in hours worked for individual programs. The Housing Authority could not provide adequate support for payroll expense allocation.

Corrective Action Plan

The Housing Authority will initiate time studies each quarter to more accurately reflect costs charged to the effected programs.

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.415 Rural Rental Housing Loans $2.96M
14.871 Section 8 Housing Choice Vouchers $2.90M
14.872 Public Housing Capital Fund $965,167
14.850 Public and Indian Housing $785,684
10.427 Rural Rental Assistance Payments $371,277
10.766 Community Facilities Loans and Grants $268,466