Finding Text
2022 – 010
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Moving to Work Demonstration Program
Assistance Listing Number: 14.881
Federal Award Identification Number and Year: DC001VO - 2022
Award Period: October 1, 2021 – September 30, 2022
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria or specific requirement: Costs charged to the grant must be allowable in accordance with the criteria contained in 2 CFR Part 200, as applicable.
Condition/Context: Exceptions noted in 1 of 40 allowable costs transactions:
• For 1 payroll transaction selected, the Authority was unable to substantiate the rate of pay charged to the grant.
Questioned Costs: $9,326 known; $1,636,013 projected.
Cause: The Authority did not sufficiently monitor controls to ensure compliance with allowable activity requirements.
Effect: The Authority is not in compliance with federal regulations related to allowable costs.
Repeat Finding: No.
Recommendation: We recommend management review the record-keeping practices to ensure that personnel documentation related to employee payrates can be easily accessed.
Views of Responsible Officials: There is no disagreement with the audit finding.