FAC Explorer

Finding 575491 (2024-002)

Significant Deficiency
Requirement
H
Questioned Costs
$1
Year
2024
Accepted
2025-09-03
Audit: 365488
Organization: Avivo (MN)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: Expenses were incorrectly charged to the next grant period due to a system error.
  • Impacted Requirements: Compliance with Uniform Grant Guidance on allowable costs during the grant's performance period was not met.
  • Recommended Follow-Up: Implement additional controls to ensure costs are accurately charged within the correct grant period.

Finding Text

2024 – 002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Continuum of Care Program Assistance Listing Number: 14.267 Federal Award Identification Number and Year: Multiple Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: January 1, 2024 – December 31, 2024 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Uniform Grant Guidance (45 CFR 75.309(a)) notes a non-Federal entity may charge to the Federal award only allowable costs incurred during the period of performance (except as described in § 75.461) and any costs incurred before the HHS awarding agency or pass-through entity made the Federal award that were authorized by the Federal awarding agency or pass-through entity. Funds available to pay allowable costs during the period of performance include both Federal funds awarded and carryover balances. Condition: During our testing, we identified 2 expenses charged to the next grant period, instead of the correct period of the grant. Questioned costs: $16.44 Context: During our testing, we identified 2 expenses that were inadvertently entered into the wrong accounting period due to a system issue which caused the expenses to be billed to the wrong grant period. Cause: The Organization’s system encountered an issue with the sync tool that is used to integrate mileage data from the organization’s payroll system. Effect: The Organization was not in compliance with the period of performance requirement since costs were charged to the grant prior to the start of the period of performance. Repeat Finding: No Recommendation: We recommend the Organization evaluate its procedures and implement an additional control to ensure costs are charged to the grant during the period of performance. Views of responsible officials: There is no disagreement with the audit finding. This was an exception and controls have been put in place to ensure that this does not re-occur.

Corrective Action Plan

Continuum of Care Program – Assistance Listing No. 14.267 Recommendation: We recommend the Organization evaluate its procedures and implement an additional control to ensure costs are charged to the grant during the period of performance. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Prior to 2023-2024, we only had one primary HUD contract that we were solely responsible for spending and contract timelines. With the addition of three more COC grants, with different, yet close together end dates, we needed to develop a more formalized process to ensure all expenses are billed to the correct contract for the correct dates. Avivo will implement oversight check-in meetings at least one month prior to each contract end and at least one more before final grant submissions. This meeting will include program leadership, RAA, Director of Housing Compliance, and our Contracts Accountant who oversees eLOCCS pulls. We will discuss all final expenditures and any upcoming expenses that may near the end of the grant term, including staff expenditures like mileage reimbursement. We will create an oversight document that highlights all areas to consider and breaks down roles and responsibilities to drive these meetings ongoingly. Accounting and program leadership will closely monitor spending via Papersave, credit card submission and through Paycom falls within the correct payment periods. Additionally, the RAA and Program Managers in the last quarter of the grant cycle, will meet monthly to work to resolve any outstanding rent balances and oversee any staff reimbursement or other charges that may need to be accounted for. Name(s) of the contact person(s) responsible for corrective action: Courtney Knoll & Lyssa Westling. Planned completion date for corrective action plan: December 2025

Categories

Questioned Costs Subrecipient Monitoring Allowable Costs / Cost Principles Period of Performance Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 575475 2024-001
    Significant Deficiency
  • 575476 2024-001
    Significant Deficiency
  • 575477 2024-001
    Significant Deficiency
  • 575478 2024-001
    Significant Deficiency
  • 575479 2024-001
    Significant Deficiency
  • 575480 2024-001
    Significant Deficiency
  • 575481 2024-001
    Significant Deficiency
  • 575482 2024-001
    Significant Deficiency
  • 575483 2024-001
    Significant Deficiency
  • 575484 2024-001
    Significant Deficiency
  • 575485 2024-001
    Significant Deficiency
  • 575486 2024-001
    Significant Deficiency
  • 575487 2024-001
    Significant Deficiency
  • 575488 2024-001
    Significant Deficiency
  • 575489 2024-001
    Significant Deficiency
  • 575490 2024-001
    Significant Deficiency
  • 575492 2024-002
    Significant Deficiency
  • 575493 2024-002
    Significant Deficiency
  • 575494 2024-002
    Significant Deficiency
  • 575495 2024-002
    Significant Deficiency
  • 575496 2024-002
    Significant Deficiency
  • 575497 2024-002
    Significant Deficiency
  • 575498 2024-002
    Significant Deficiency
  • 575499 2024-002
    Significant Deficiency
  • 575500 2024-002
    Significant Deficiency
  • 575501 2024-002
    Significant Deficiency
  • 575502 2024-002
    Significant Deficiency
  • 575503 2024-002
    Significant Deficiency
  • 575504 2024-002
    Significant Deficiency
  • 575505 2024-002
    Significant Deficiency
  • 575506 2024-002
    Significant Deficiency
  • 575507 2024-003
    Significant Deficiency
  • 1151917 2024-001
    Significant Deficiency
  • 1151918 2024-001
    Significant Deficiency
  • 1151919 2024-001
    Significant Deficiency
  • 1151920 2024-001
    Significant Deficiency
  • 1151921 2024-001
    Significant Deficiency
  • 1151922 2024-001
    Significant Deficiency
  • 1151923 2024-001
    Significant Deficiency
  • 1151924 2024-001
    Significant Deficiency
  • 1151925 2024-001
    Significant Deficiency
  • 1151926 2024-001
    Significant Deficiency
  • 1151927 2024-001
    Significant Deficiency
  • 1151928 2024-001
    Significant Deficiency
  • 1151929 2024-001
    Significant Deficiency
  • 1151930 2024-001
    Significant Deficiency
  • 1151931 2024-001
    Significant Deficiency
  • 1151932 2024-001
    Significant Deficiency
  • 1151933 2024-002
    Significant Deficiency
  • 1151934 2024-002
    Significant Deficiency
  • 1151935 2024-002
    Significant Deficiency
  • 1151936 2024-002
    Significant Deficiency
  • 1151937 2024-002
    Significant Deficiency
  • 1151938 2024-002
    Significant Deficiency
  • 1151939 2024-002
    Significant Deficiency
  • 1151940 2024-002
    Significant Deficiency
  • 1151941 2024-002
    Significant Deficiency
  • 1151942 2024-002
    Significant Deficiency
  • 1151943 2024-002
    Significant Deficiency
  • 1151944 2024-002
    Significant Deficiency
  • 1151945 2024-002
    Significant Deficiency
  • 1151946 2024-002
    Significant Deficiency
  • 1151947 2024-002
    Significant Deficiency
  • 1151948 2024-002
    Significant Deficiency
  • 1151949 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $763,532
17.289 Community Project Funding/congressionally Directed Spending $599,443
14.231 Emergency Solutions Grant Program $598,950
14.218 Community Development Block Grants/entitlement Grants $383,467
93.136 Injury Prevention and Control Research and State and Community Based Programs $165,027
93.558 Temporary Assistance for Needy Families $137,028
93.788 Opioid Str $131,237
21.027 Coronavirus State and Local Fiscal Recovery Funds $63,057
17.259 Wioa Youth Activities $35,912
17.258 Wioa Adult Program $34,048
93.959 Block Grants for Prevention and Treatment of Substance Abuse $23,229
93.958 Block Grants for Community Mental Health Services $19,324
93.566 Refugee and Entrant Assistance State/replacement Designee Administered Programs $18,767
93.575 Child Care and Development Block Grant $13,156
17.278 Wioa Dislocated Worker Formula Grants $12,925
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $3,283
14.267 Continuum of Care Program $1,542