Finding Text
Federal program information: Funding agencies: U.S. Department of Housing and Urban Development Titles: Emergency Shelter Grants Program Assistance Listing Number: 14.231 Award numbers: C21-0580, 152439-0, 152126-0, ADES18-206228 Pass-Through grantors: City of Glendale, Arizona, City of Phoenix, Arizona and Arizona Department of Economic Security Compliance Requirements: Special Tests ? Payments to Subrecipients Questioned Costs: N/A Criteria: Code of Federal Regulations ? 576.203(c) Obligation, expenditure and payment requirements state that recipients of ESG funds must pay each subrecipient for allowable costs within 30 days after receiving the subrecipient?s complete payment request. Condition: For 4 of 15 subrecipient payments selected for review it was noted that the payments were not made within the 30 day allowable period. Per discussion with management it was determined that the payments were not made within the time limit as a result of missing or inaccurate information in the subrecipient?s drawdown requests. However, no additional documentation could be provided to show that items were missing from the drawdown requests. Cause and Effect: The organization does not have adequate policies and procedures in place to document the subrecipient drawdown review and they did not maintain adequate supporting documentation to show draw down requests were incomplete. The result is that there is increased chance of non-compliance with the requirements of the grant. Auditors? Recommendations: The organization should establish policies and procedures to ensure that drawdown requests are documented when received and should maintain adequate documentation to substantiate delays in payments made to subrecipients.