Finding Text
2022-004 Allowable Costs, Activities and Period of Performance Federal Agency: U.S Department of Housing and Urban Development Federal Program Name: Community Development Block Grant Assistance Listing Number: 14.218 Federal Award Identification Number and Year: B21MC120027, various Award Period: October 1, 2021 through September 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matter Criteria: The contract award start date is October 1, 2021. Expenditures incurred prior to the contract start date are not eligible for reimbursement under this contract agreement. Condition: Expenditures incurred prior to the grant contract?s period of performance per the contract agreement were improperly charged to the grant prior to the contract?s stated start date of October 1, 2021. Questioned Costs: None Context: Our sample of four transactions during the first month of the contract period identified one transaction in the amount of $101 charged to the program outside of the period of performance. Cause: The City?s internal controls did not prevent or detect the error. Repeat Finding: No Effect: The City was not in compliance with period of performance requirements as specified in the grant agreement. Recommendation: We recommend the City establish procedures for the accrual of grant-related reimbursements to ensure expenditures are invoiced within the appropriate contract dates as specified by the agreements. Views of responsible officials: Management will ensure that grant expenditures processed after the end of the fiscal year are thoroughly reviewed to ensure they are recorded in the correct fiscal year.