FAC Explorer

Finding 499645 (2023-003)

Significant Deficiency Repeat Finding
Requirement
ABH
Questioned Costs
$1
Year
2023
Accepted
2024-09-30
Audit: 322528
Organization: St. Vincent De Paul Village, Inc. (CA)
Auditor: Bdo USA PC

AI Summary

  • Core Issue: The Village failed to maintain proper documentation and internal controls for payroll allocations to federal programs, leading to unsupported costs.
  • Impacted Requirements: Compliance with 2 CFR §200.303 and §200.430 regarding accurate tracking and documentation of personnel expenses was not met.
  • Recommended Follow-Up: Implement stronger policies for timesheet tracking and approval processes to ensure accurate allocation of payroll costs to federal grants.

Finding Text

Federal Agencies: Department of Housing and Urban Development Federal Assistance Listing Numbers: 14.241, 14.267 Program: Housing Opportunities for Persons with AIDS, COVID-19 Housing Opportunities for Persons with AIDS, Continuum of Care Program Award/Pass-Through Entity Identifying Numbers: 558951, 570094, CA0802L9D012113, CA0802L9D012214, CA1348L9D012107, CA1348L9D012208, CA1510L9D012106, CA1510LD012207, CA1883L9D012102, CA1883L9D012203, HHI-23-03, HHI-24-09, HHI-23-13, HHI-24-04 Criteria: The Uniform Guidance in 2 CFR §200.303 requires that non Federal entities receiving Federal awards (i.e., auditee management) establish and maintain internal control designed to reasonably ensure compliance with Federal statues, regulations, and the terms and conditions of the Federal award. Per 2 CFR §200.430 Compensation – Personal Services: “Standards for Documentation of Personnel Expenses (1) Charges to Federal awards for salaries and wages must be based on records that accurately reflect the work performed. These records must: (i) Be supported by a system of internal control, which provides reasonable assurance that the charges are accurate, allowable, and properly allocated; (ii) Be incorporated into the official records of the non-Federal entity; (iii) Reasonably reflect the total activity for which the employee is compensated by the non-Federal entity, not exceeding 100% of compensated activities; (iv) Encompass federally assisted and all other activities compensated by the non-Federal entity on an integrated basis, but may include the use of subsidiary records as defined in the non Federal entity’s written policy; (v) Comply with the established accounting policies and practices of the non Federal entity; and (vi) [Reserved] (vii) Support the distribution of the employee’s salary or wages among specific activities or cost objectives if the employee works on more than one Federal award; a Federal award and non-Federal award; an indirect cost activity and a direct cost activity; two or more indirect activities, which are allocated using different allocation bases; or an unallowable activity and a direct or indirect cost activity. (viii) Budget estimates (i.e., estimates determined before the services are performed) alone do not qualify as support for charges to Federal awards, but may be used for interim accounting purposes, provided that: (A) The system for establishing the estimates produces reasonable approximations of the activity actually performed; (B) Significant changes in the corresponding work activity (as defined by the non-Federal entity’s written policies) are identified and entered into the records in a timely manner. Short-term (such as one or two months) fluctuation between workload categories need not be considered as long as the distribution of salaries and wages is reasonable over the longer term; and (C) The non-Federal entity’s system of internal controls includes processes to review after the fact interim charges made to a Federal award based on budget estimates. All necessary adjustment must be made such that the final amount charged to the Federal award is accurate, allowable, and properly allocated.” Condition: We noted that the Village allocated payroll expenditures to Housing Opportunities for Persons with AIDS and the Continuum of Care Program during 2023 using allocations that lacked adequate support. During our testing we noted instances where employees did not track their actual time and effort for allocation to the grant, instances where the incorrect allocation rate was utilized, and/or allocations were not fully reviewed and approved. • For Housing Opportunities for Persons with AIDS: o 3 out of 60 selections had approved timesheet allocations that supported a lower rate than those utilized. o 1 out of 60 selections did not maintain a timesheet allocation. o 3 out of 60 selections did not maintain documentation of employee and/or supervisor approval of timesheet allocations. o 4 out of 60 selections had approved timesheet allocations that supported a higher rate than those utilized. • For the Continuum of Care Program: o 4 out of 83 selections did not maintain a timesheet allocation. o 2 out of 83 selections had approved timesheet allocations that supported a lower rate than those utilized. o 3 out of 83 selections did not match allocated timesheet hours to actual hours worked. Cause: The Village did not have adequate policies/procedures in place to ensure timesheet allocations are obtained for all employees charging time to federal grants and that they are appropriately reviewed and incorporated into calculations for amounts charged to federal grants. The Village relied heavily on manual processes which are more prone to error and did not have an adequate review process to identify and correct calculation errors. Effect or Potential Effect: Without adequate controls to detect calculation errors and ensure that costs allocated to federal programs are supported, the Village could incorrectly charge expenditures to the federal program, or not request appropriate reimbursement the Village is entitled to under the terms of the grant. Questioned Costs: Housing Opportunities for Persons with AIDS Known Questioned Costs: $881 Housing Opportunities for Persons with AIDS Likely Questioned Costs: $37,747 Continuum of Care Program Known Questioned Costs: $869 Continuum of Care Program Likely Questioned Costs: $144,388 Context: This is a condition identified per review of the Village’s compliance with specified requirements not using a statistically valid sample. Payroll costs including fringe benefits for the Housing Opportunities for Persons with AIDS in 2023 were $807,050. Total costs for the Continuum of Care Program in 2023 were $5,296,450. Any costs not adequately supported by approved timesheet allocations or in excess of supported allocations are considered questioned costs. Identification as a Repeat Finding: 2022-010, 2022-017 Recommendation: We recommend implementing system improvements to reduce manual entry and establishing policies to review reimbursement calculations before submission. The Village should consistently obtain and retain timesheet allocation approvals from both employees and supervisors for each pay period requested for reimbursement. These records should be maintained until the grant is closed and required audits are completed. Views of Responsible Officials: Management agrees with the finding. Management is updating their written procedures to ensure that allowable costs and cost principles comply with §200.430 as well as enhancements to the time entry system and allocation procedures.

Categories

Questioned Costs Allowable Costs / Cost Principles Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 499644 2023-003
    Significant Deficiency Repeat
  • 499646 2023-003
    Significant Deficiency Repeat
  • 499647 2023-003
    Significant Deficiency Repeat
  • 499648 2023-003
    Significant Deficiency Repeat
  • 499649 2023-003
    Significant Deficiency Repeat
  • 499650 2023-003
    Significant Deficiency Repeat
  • 499651 2023-003
    Significant Deficiency Repeat
  • 499652 2023-003
    Significant Deficiency Repeat
  • 499653 2023-003
    Significant Deficiency Repeat
  • 499654 2023-003
    Significant Deficiency Repeat
  • 499655 2023-003
    Significant Deficiency Repeat
  • 499656 2023-003
    Significant Deficiency Repeat
  • 499657 2023-003
    Significant Deficiency Repeat
  • 499658 2023-003
    Significant Deficiency Repeat
  • 499659 2023-004
    Significant Deficiency Repeat
  • 499660 2023-004
    Significant Deficiency Repeat
  • 499661 2023-004
    Significant Deficiency Repeat
  • 499662 2023-004
    Significant Deficiency Repeat
  • 499663 2023-004
    Significant Deficiency Repeat
  • 499664 2023-004
    Significant Deficiency Repeat
  • 499665 2023-004
    Significant Deficiency Repeat
  • 499666 2023-004
    Significant Deficiency Repeat
  • 499667 2023-005
    Material Weakness Repeat
  • 499668 2023-005
    Material Weakness Repeat
  • 499669 2023-005
    Material Weakness Repeat
  • 499670 2023-005
    Material Weakness Repeat
  • 499671 2023-005
    Material Weakness Repeat
  • 499672 2023-005
    Material Weakness Repeat
  • 499673 2023-005
    Material Weakness Repeat
  • 499674 2023-005
    Material Weakness Repeat
  • 499675 2023-005
    Material Weakness Repeat
  • 499676 2023-005
    Material Weakness Repeat
  • 499677 2023-005
    Material Weakness Repeat
  • 499678 2023-005
    Material Weakness Repeat
  • 499679 2023-005
    Material Weakness Repeat
  • 499680 2023-005
    Material Weakness Repeat
  • 499681 2023-005
    Material Weakness Repeat
  • 499682 2023-005
    Material Weakness Repeat
  • 499683 2023-005
    Material Weakness Repeat
  • 499684 2023-006
    Material Weakness Repeat
  • 499685 2023-006
    Material Weakness Repeat
  • 499686 2023-006
    Material Weakness Repeat
  • 499687 2023-006
    Material Weakness Repeat
  • 499688 2023-006
    Material Weakness Repeat
  • 499689 2023-006
    Material Weakness Repeat
  • 499690 2023-006
    Material Weakness Repeat
  • 499691 2023-006
    Material Weakness Repeat
  • 499692 2023-006
    Material Weakness Repeat
  • 499693 2023-006
    Material Weakness Repeat
  • 499694 2023-006
    Material Weakness Repeat
  • 499695 2023-006
    Material Weakness Repeat
  • 499696 2023-007
    Material Weakness
  • 499697 2023-007
    Material Weakness
  • 499698 2023-007
    Material Weakness
  • 499699 2023-007
    Material Weakness
  • 499700 2023-007
    Material Weakness
  • 499701 2023-007
    Material Weakness
  • 499702 2023-007
    Material Weakness
  • 499703 2023-007
    Material Weakness
  • 499704 2023-007
    Material Weakness
  • 499705 2023-007
    Material Weakness
  • 499706 2023-007
    Material Weakness
  • 499707 2023-007
    Material Weakness
  • 499708 2023-008
    Significant Deficiency Repeat
  • 499709 2023-008
    Significant Deficiency Repeat
  • 499710 2023-008
    Significant Deficiency Repeat
  • 499711 2023-008
    Significant Deficiency Repeat
  • 499712 2023-008
    Significant Deficiency Repeat
  • 499713 2023-008
    Significant Deficiency Repeat
  • 499714 2023-008
    Significant Deficiency Repeat
  • 499715 2023-008
    Significant Deficiency Repeat
  • 499716 2023-008
    Significant Deficiency Repeat
  • 499717 2023-008
    Significant Deficiency Repeat
  • 499718 2023-008
    Significant Deficiency Repeat
  • 499719 2023-008
    Significant Deficiency Repeat
  • 499720 2023-009
    Significant Deficiency
  • 499721 2023-009
    Significant Deficiency
  • 499722 2023-009
    Significant Deficiency
  • 499723 2023-009
    Significant Deficiency
  • 499724 2023-009
    Significant Deficiency
  • 1076086 2023-003
    Significant Deficiency Repeat
  • 1076087 2023-003
    Significant Deficiency Repeat
  • 1076088 2023-003
    Significant Deficiency Repeat
  • 1076089 2023-003
    Significant Deficiency Repeat
  • 1076090 2023-003
    Significant Deficiency Repeat
  • 1076091 2023-003
    Significant Deficiency Repeat
  • 1076092 2023-003
    Significant Deficiency Repeat
  • 1076093 2023-003
    Significant Deficiency Repeat
  • 1076094 2023-003
    Significant Deficiency Repeat
  • 1076095 2023-003
    Significant Deficiency Repeat
  • 1076096 2023-003
    Significant Deficiency Repeat
  • 1076097 2023-003
    Significant Deficiency Repeat
  • 1076098 2023-003
    Significant Deficiency Repeat
  • 1076099 2023-003
    Significant Deficiency Repeat
  • 1076100 2023-003
    Significant Deficiency Repeat
  • 1076101 2023-004
    Significant Deficiency Repeat
  • 1076102 2023-004
    Significant Deficiency Repeat
  • 1076103 2023-004
    Significant Deficiency Repeat
  • 1076104 2023-004
    Significant Deficiency Repeat
  • 1076105 2023-004
    Significant Deficiency Repeat
  • 1076106 2023-004
    Significant Deficiency Repeat
  • 1076107 2023-004
    Significant Deficiency Repeat
  • 1076108 2023-004
    Significant Deficiency Repeat
  • 1076109 2023-005
    Material Weakness Repeat
  • 1076110 2023-005
    Material Weakness Repeat
  • 1076111 2023-005
    Material Weakness Repeat
  • 1076112 2023-005
    Material Weakness Repeat
  • 1076113 2023-005
    Material Weakness Repeat
  • 1076114 2023-005
    Material Weakness Repeat
  • 1076115 2023-005
    Material Weakness Repeat
  • 1076116 2023-005
    Material Weakness Repeat
  • 1076117 2023-005
    Material Weakness Repeat
  • 1076118 2023-005
    Material Weakness Repeat
  • 1076119 2023-005
    Material Weakness Repeat
  • 1076120 2023-005
    Material Weakness Repeat
  • 1076121 2023-005
    Material Weakness Repeat
  • 1076122 2023-005
    Material Weakness Repeat
  • 1076123 2023-005
    Material Weakness Repeat
  • 1076124 2023-005
    Material Weakness Repeat
  • 1076125 2023-005
    Material Weakness Repeat
  • 1076126 2023-006
    Material Weakness Repeat
  • 1076127 2023-006
    Material Weakness Repeat
  • 1076128 2023-006
    Material Weakness Repeat
  • 1076129 2023-006
    Material Weakness Repeat
  • 1076130 2023-006
    Material Weakness Repeat
  • 1076131 2023-006
    Material Weakness Repeat
  • 1076132 2023-006
    Material Weakness Repeat
  • 1076133 2023-006
    Material Weakness Repeat
  • 1076134 2023-006
    Material Weakness Repeat
  • 1076135 2023-006
    Material Weakness Repeat
  • 1076136 2023-006
    Material Weakness Repeat
  • 1076137 2023-006
    Material Weakness Repeat
  • 1076138 2023-007
    Material Weakness
  • 1076139 2023-007
    Material Weakness
  • 1076140 2023-007
    Material Weakness
  • 1076141 2023-007
    Material Weakness
  • 1076142 2023-007
    Material Weakness
  • 1076143 2023-007
    Material Weakness
  • 1076144 2023-007
    Material Weakness
  • 1076145 2023-007
    Material Weakness
  • 1076146 2023-007
    Material Weakness
  • 1076147 2023-007
    Material Weakness
  • 1076148 2023-007
    Material Weakness
  • 1076149 2023-007
    Material Weakness
  • 1076150 2023-008
    Significant Deficiency Repeat
  • 1076151 2023-008
    Significant Deficiency Repeat
  • 1076152 2023-008
    Significant Deficiency Repeat
  • 1076153 2023-008
    Significant Deficiency Repeat
  • 1076154 2023-008
    Significant Deficiency Repeat
  • 1076155 2023-008
    Significant Deficiency Repeat
  • 1076156 2023-008
    Significant Deficiency Repeat
  • 1076157 2023-008
    Significant Deficiency Repeat
  • 1076158 2023-008
    Significant Deficiency Repeat
  • 1076159 2023-008
    Significant Deficiency Repeat
  • 1076160 2023-008
    Significant Deficiency Repeat
  • 1076161 2023-008
    Significant Deficiency Repeat
  • 1076162 2023-009
    Significant Deficiency
  • 1076163 2023-009
    Significant Deficiency
  • 1076164 2023-009
    Significant Deficiency
  • 1076165 2023-009
    Significant Deficiency
  • 1076166 2023-009
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.527 Grants for New and Expanded Services Under the Health Center Program $623,390
93.526 Fip Verification $442,558
14.218 Community Development Block Grants/entitlement Grants $406,289
14.241 Housing Opportunities for Persons with Aids $373,213
93.224 Health Center Program (community Health Centers, Migrant Health Centers, Health Centers for the Homeless, and Public Housing Primary Care) $275,129
14.231 Emergency Solutions Grant Program $225,758
97.008 Non-Profit Security Program $187,256
97.024 Emergency Food and Shelter National Board Program $171,396
14.267 Continuum of Care Program $169,813
10.558 Child and Adult Care Food Program $94,259
64.033 Va Supportive Services for Veteran Families Program $63,259
32.006 Covid-19 Telehealth Program $15,312
45.129 Promotion of the Humanities_federal/state Partnership $12,500