Finding 478868 (2021-005)

FINDING 2021-005 Federal Award: U.S. Department of Housing and Urban Development CFDA# 14.267 Continuum of Care Grant No. MI0071L5F011912 CFDA# 14.267 Continuum of Care Grant No. MI0439L5F011903 Finding Type: Significant Deficiency - Program Income Criteria: 2 CFR Section 200.307(e), provides for Program Income to be deducted from total allowable program costs to determine the net allowable program costs or used to meet matching requirements. Condition: Program income was not used by DCCCMH to meet their matching requirements. DCCCMH reported allowable net program costs in excess of actual net allowable program costs of $15,569 and $3,446 for grants MI0071L5F011912 and MI0439L5F011903, respectively. Effect: Noncompliance with the Program Income requirements. Cause: The lack of monitoring and review to ensure that grant reimbursements did not exceed net allowable costs. Questioned Cost: $19,015 Recommendation: DCCCMH should review and monitor general ledger accounts used to report Federal grant activity to ensure that costs reported do not exceed net allowable program costs. Management Response: Management acknowledges that program income generated from specific programs is to be used to cover net allowable program costs or to meet matching requirements. DCCCMH will implement measures to track program income for grant programs and will use program income to offset allowable program costs when preparing financial status reports. These measures will be incorporated into the updates to the financial policies and procedures for grant programs.