Finding Text
Finding # 2024-003
Federal Grantor: U.S. Department of Housing and Urban Development
AL# / Program: 14.181 - Supportive Housing for Persons with Disabilities
Type of Finding: Federal Award Finding - Activities Allowed or Unhallowed and Special Tests and Provisions
Finding Resolution Status: In Process
Information on Universe Population Size: N/A
Sample size information: N/A
Criteria: The Organization's disbursements must be supported by approved bills, invoices, or other supporting documentation in the name of the Project that demonstrate costs have a direct benefit, are specific and necessary, are reasonable, and not also charged to other grants or programs.
Statement of Condition / Context: Audit fees paid to Armanino LLP were not supported by a contract in the name of the Project that demonstrated direct benefit to the Project and that fees were reasonable.
Cause: Procurement policy and internal controls over procurement were insufficient to require a separate contract in the name of the Project that demonstrated direct benefit to the Project and that fees were reasonable.
Effect or Potential Effect: The project is out of compliance with the Capital Advance Program Regulatory Agreement on form HUD-92466-CA.
Auditor Non-Compliance Code: H - Unauthorized distribution of project assets
Questioned Costs: $21,897
Recommendations: We recommend that Management review is procurement policy and internal controls over procurement to ensure disbursements are supported with adequate documentation.
Response Indicator Agree
Completion Date 6/30/2025
Reporting Views of Responsible Officials and Planned Corrective Action: Going forward, the LSH audit engagement letter will not include other entities.