Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Housing Voucher Cluster
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: WI222VO167 - 2023
Award Period: January 1, 2023 – December 31, 2023
Type of Finding:
Significant Deficiency in Internal Control over Compliance
Other Matters
Criteria or specific requirement: 2 CFR Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award requires time and effort documentation for all individuals whose time is coded to the federal grants.
Condition: During our testing we noted that the organization is allocating payroll costs based on time allocation determined several years ago and did not have time and effort documentation to verify actual time spent agrees on federal program agrees to the allocation being used.
Questioned costs: Unknown
Context: Allocations of employee time to grants are set up at the beginning of the year and are not changed during the year. Organization has 4 employees who keep time sheet simply for tracking attendance and time off. These employees work the same hours and programs every week so detailed time sheet tracking is not considered necessary. Since they have small staff the bookkeeper who does the payroll and Executive Director know what hours are being worked and paid for as they would know if employee is absent. Maintenance person maintains timesheet listing what property work was performed at to code time to specific programs.
Cause: The client has been using allocation determined several years ago since responsibilities of staff have not changed.
Effect: Noncompliance with HUD requirements.
Repeat Finding: No
Recommendation: We recommend, the entity develop a method to track actual time spent on various programs to time allocated to federal award programs.
Views of responsible officials: There is no disagreement with the audit finding.