Finding Text
Material weakness in internal controls over compliance and noncompliance related to period of performance.
Federal Agency: Department of Housing and Urban Development
Program Title: Continuum of Care
Assistance Listing Number: 14.267
Award Number: OR0215L0E012106; OR0215L0E012207; OR0214L0E12106; OR0214L0E012207
Award Period: September 1, 2022 - August 31, 2023; September 1, 2023 - August 31, 2024;
September 1, 2022 - August 31, 2023; September 1, 2023 - August 31, 2024
Criteria
Per the standards contained in Title 2 US Code of Federal Regulation Uniform Administrative Requirements, Cost
Principles and Audit Requirements for Federal Awards, Subpart D - Post Federal Award Requirements, Section
200.309, only allowable costs incurred during the period of performance may be charged to the federal award.
Condition/Context for Evaluation
During our audit, from a sample of 40 transactions tested for period of performance, we identified 9 instances
where the cost was incurred either before or after the respective award’s period of performance. Identified
charges incurred outside the period of performance totaled $7,094. We also identified two separate instances
where the disbursement tested did not have documented review and approval by the Program Manager as to the
charge being an allowable charge incurred within the period of performance in accordance with the League’s
internal controls over compliance procedures.
Effect or Potential Effect
The League charged to the federal award costs incurred outside the period of performance.
Cause
The League’s controls did not operate effectively to prevent or detect expenditures that were incurred outside of
the federal award’s period of performance.
Questioned Costs
$7,094
Repeat Finding
No
Recommendation
We recommend the League strengthen its internal control processes and procedures to ensure there are
adequate controls in place to identify and record charges in the correct period to prevent charges to federal
awards that did not occur within the award’s period of performance.
Views of Responsible Officials of Auditee
Management concurs with the finding and has provided the accompanying corrective action plan.