Finding 45798 (2022-003)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-05-15

AI Summary

  • Core Issue: The Organization did not monitor a third-party provider, leading to untimely annual recertifications for tenant eligibility.
  • Impacted Requirements: This situation violates 2 CFR Part 200.303, which mandates internal controls for managing federal awards.
  • Recommended Follow-Up: Implement internal controls to oversee third-party activities and ensure compliance with federal regulations.

Finding Text

Criteria: 2 CFR Part 200.303 establishes internal control requirements over federal awards that provides reasonable assurance the entity is managing the federal award in compliance with Federal Statutes. Condition: The Organization contracted with a third party to determine eligibility of tenants. During the year, the third party failed to complete annual recertifications timely. Internal controls should be present to monitor the activities of the third party to ensure timely completion of recertifications. Cause: The Organization relied on a third-party provider to perform the work they were contracted to perform and did not implement internal controls to monitor the services provided to ensure they complied with Federal Statutes. Effect: Annual recertifications were not performed timely. Questioned Costs: None Recommendations: The Organization should implement internal controls to monitor the activities of third-party providers to ensure the services being provided are in compliance with Federal Statutes.

Categories

Eligibility Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $442,715
14.239 Home Investment Partnerships Program $196,333
93.268 Immunization Cooperative Agreements $94,400
14.218 Community Development Block Grants/entitlement Grants $48,333
14.195 Section 8 Housing Assistance Payments Program $8,505