Finding Text
2020-003 General Disbursements (Significant Deficiency; Other Noncompliance)
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Title: HOME Investment Partnerships Program
Assistance Listing Number: 14.239
Condition: During our testing of a sample of three cash disbursements, management was unable to provide evidence for two of the transactions that the grant expenditure was approved by a
knowledgeable reviewer.
Criteria: In accordance with Uniform Guidance Part 200.405, a cost is allocable to a particular federal
award or other cost objective if the goods or services involved are chargeable or assignable to the federal award or cost objective in accordance with relative benefits received.
Context: Using the complete population of 30 administrative cost disbursements charged to the HOME Investment Partnerships Program, we tested a sample of 3 disbursements to test that
expenditures were approved by someone knowledgeable of the grant terms and conditions.
Effect: Of the three transactions randomly selected, management was unable to provide evidence that the grant expenditure was reviewed by someone knowledgeable of the grant for two transactions.
Questioned costs: NoneCause: Management did not have adequate controls in place to verify the validity of the amounts charged to the federal award.
Recommendation: Internal controls should be strengthened to document approval of grant expenditures by an individual who is knowledgeable of the grant terms and conditions before it is
charged to the Program.
Management Response: DBAS will establish a set procedure to follow both Finance Department and Loans Department and ensure approval procedures are followed through before loan
disbursements are issued.
Responsible Persons: Faaeteete Sio and Venetta Holi