Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Home Investment Partnerships Program
Assistance Listing Number: 14.239
Federal Award Identification Number and Year: Various
Pass-Through Agency: Department of Community and Economic Development
Pass-Through Number(s): Various
Award Period: 7/1/2023 – 6/30/2024
Type of Finding:
Other Matters and Significant Deficiency in Internal Control over Compliance
Criteria or specific requirement: Per the compliance supplement, agencies are permitted to use program funds for the payment of reasonable administrative and planning costs.
Condition: During our testing of 40 payroll charges to the Home Investment Partnerships Program, we noted that 1 employee's total hours were entered incorrectly, overcharging administrative cost reimbursement.
Questioned costs:
Known - $1,088
Likely - $3,095
Context: In a statistically valid sample, we noted that 1 of 40 payroll charges tested contained an employee whose total hours were entered incorrectly as 410.50 instead of 40.50. The payroll system capped the hours charged to the maximum of 75 hours, which is still over by 34.50 hours.
Cause: Although internal control procedures were followed, and support agreed to 40.50 hours, a typographical error occurred during creation of the bill submitted to HUD.
Effect: There is an error in the administrative reimbursement requested of HUD.
Repeat Finding: Not a repeat finding.
Recommendation: We recommend that PHFA review their internal control procedures over the compilation of their Home Investment Partnerships Program administrative expenses prior to submission to HUD for reimbursement.
Views of responsible officials: There is no disagreement with the audit finding.