Finding Text
Information on the Federal Program: Assistance Listing Number 14.267? U.S. Department of Housing and Urban Development ? Office of Community Planning and Development ? Continuum of Care Program. Awarding Entity: Office of Community Planning and Development ? San Francisco Regional Office. Compliance Requirements: Reporting. Type of Finding: Significant Deficiency. Criteria: Program requirements state that required reports for federal awards should include all activities of the reporting period, are supported by applicable accounting or performance records, and are fairly presented in accordance with governing requirements. Condition: For the year ended June 30, 2022, we reviewed the Schedule of Expenses and Federal Awards (?SEFA?) and matched with the general ledger details together with the details per federal grant awards to ascertain those federal expenditures for the year were properly supported and reported. Cause: Program staff used incorrect award number in coding some transactions that occurred near the end of the grant term. Also, the individual preparing the SEFA appeared to copy the Assistance Listing number of previous year?s grant awards for another program under the same awarding entity. Effect or Potential Effect: As a result, the client-prepared SEFA initially submitted for audit needed to be revised to reflect the correct Assistance Listing number and federal expenditures for the year ended June 30, 2022. Context: Upon review of client-prepared SEFA, it was noted there were instances of inaccurate Assistance Listing numbers. In addition, there were incorrect federal expenditures recorded due to certain transactions were coded to the incorrect grant term in the source data (i.e., the general ledger details) and due to understatements of certain reimbursable expenses, resulting in variances between the Organization?s SEFA and the amounts actually billed to federal grant awards. The amounts were reported incorrectly on the SEFA for what was actually billed. Recommendation: We recommend that the Organization ensure consistency between its SEFA and the amounts actually billed to federal grant awards so as to provide an accurate record moving forward. Views of Responsible Official: Management of Caminar concurs with the audit finding. The individual preparing the report has been informed of the proper requirements, and management will perform a quality control review over future report submissions to ensure proper coding.