Finding Text
U.S. Department of Housing and Urban Development
FFAL # 14.231, 2020/2021/2022/2023 Award Year, Award Number: Not Provided
COVID-19 Emergency Solutions Grant Program (ESG – CV)
Emergency Solutions Grant Program (ESG)
Activities Allowed and Allowable Costs
Significant Deficiency in Internal Controls
Criteria: Uniform Guidance requires that payroll costs allocated to a program be based on actual
time work based on proper support.
Condition: In three instances, the amount reimbursed to subrecipients were paid out based on
the persons paycheck stub showing allocation of hours which did not match backup provided for
hours worked under the program,
Cause: ESG employee used an amount that differed from the backup provided by subrecipient.
Effect: Payments were either overpaid or underpaid to subrecipients.
Questioned Costs: None reported as less than $25,000.
Context/Sampling: We tested 49 of the 241 payments.
Repeat Finding from Prior Year(s): No
Recommendation: We recommend a review of the actual hours worked to ensure that proper
amounts are reimbursed to the subrecipients.
Views of Responsible Officials: Management agrees with the finding.