Finding 576262 (2021-010)

Material Weakness
Requirement
A
Questioned Costs
$1
Year
2021
Accepted
2025-09-12
Audit: 366162
Organization: Community Homeless Solutions (CA)

AI Summary

  • Core Issue: The Agency failed to keep proper documentation for direct costs charged to federal awards, leading to missing or incomplete records.
  • Impacted Requirements: Federal regulations require that all direct costs be supported by adequate documentation, such as invoices and payroll records, to ensure they are allowable and reasonable.
  • Recommended Follow-Up: Implement procedures to maintain and review documentation for all direct costs, ensuring compliance with federal guidelines and organizational policies.

Finding Text

Finding 2021-010 – Compliance and Internal Control Over Supporting Documentation – Allowable Costs (Material Weakness) Federal Program 14.231 Emergency Solutions Grant Condition: The Agency did not maintain adequate documentation to support several direct costs charged to federal awards. In particular, invoices, receipts, or other required supporting documentation were missing or incomplete, resulting in an inability to substantiate the direct costs claimed for reimbursement. Criteria: Direct costs charged to federal awards must be supported by proper documentation, such as invoices, purchase orders, payroll records, and timesheets. These expenses must be allowable, allocable, and reasonable in accordance with the terms of the federal award and the Agency’s established policies. Cause: The Agency lacked a consistent process for tracking and retaining documentation for direct costs related to federal awards, leading to missing or incomplete supporting records for certain expenses. Effect: The absence of adequate supporting documentation for direct costs exposes the Agency to the risk of noncompliance with federal regulations, which could result in disallowed costs. Additionally, this could impact the Agency’s ability to accurately report expenses and potentially jeopardize future funding. Questioned Costs: $5,317 Recommendation: We recommend the Agency implement procedures to ensure that all direct costs charged to federal awards are supported by proper documentation and retained in accordance with Uniform Guidance. This includes regularly reviewing and reconciling supporting records to ensure compliance with federal regulations and organizational policies. Management’s Response: See Corrective Action Plan.

Corrective Action Plan

The agency will implement a policy of attaching or associating supporting documentation for classification for appropriate natural General Ledger and Expense Account

Categories

Questioned Costs Allowable Costs / Cost Principles Procurement, Suspension & Debarment

Other Findings in this Audit

  • 576250 2021-008
    Material Weakness
  • 576251 2021-008
    Material Weakness
  • 576252 2021-008
    Material Weakness
  • 576253 2021-008
    Material Weakness
  • 576254 2021-008
    Material Weakness
  • 576255 2021-008
    Material Weakness
  • 576256 2021-009
    Material Weakness
  • 576257 2021-009
    Material Weakness
  • 576258 2021-009
    Material Weakness
  • 576259 2021-009
    Material Weakness
  • 576260 2021-009
    Material Weakness
  • 576261 2021-009
    Material Weakness
  • 576263 2021-010
    Material Weakness
  • 576264 2021-010
    Material Weakness
  • 576265 2021-010
    Material Weakness
  • 576266 2021-010
    Material Weakness
  • 576267 2021-010
    Material Weakness
  • 576268 2021-011
    Material Weakness
  • 576269 2021-011
    Material Weakness
  • 576270 2021-011
    Material Weakness
  • 576271 2021-011
    Material Weakness
  • 576272 2021-011
    Material Weakness
  • 576273 2021-011
    Material Weakness
  • 1152692 2021-008
    Material Weakness
  • 1152693 2021-008
    Material Weakness
  • 1152694 2021-008
    Material Weakness
  • 1152695 2021-008
    Material Weakness
  • 1152696 2021-008
    Material Weakness
  • 1152697 2021-008
    Material Weakness
  • 1152698 2021-009
    Material Weakness
  • 1152699 2021-009
    Material Weakness
  • 1152700 2021-009
    Material Weakness
  • 1152701 2021-009
    Material Weakness
  • 1152702 2021-009
    Material Weakness
  • 1152703 2021-009
    Material Weakness
  • 1152704 2021-010
    Material Weakness
  • 1152705 2021-010
    Material Weakness
  • 1152706 2021-010
    Material Weakness
  • 1152707 2021-010
    Material Weakness
  • 1152708 2021-010
    Material Weakness
  • 1152709 2021-010
    Material Weakness
  • 1152710 2021-011
    Material Weakness
  • 1152711 2021-011
    Material Weakness
  • 1152712 2021-011
    Material Weakness
  • 1152713 2021-011
    Material Weakness
  • 1152714 2021-011
    Material Weakness
  • 1152715 2021-011
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
16.575 Crime Victim Assistance $177,657
93.671 Family Violence Prevention and Services/domestic Violence Shelter and Supportive Services $83,829
14.231 Emergency Solutions Grant Program $10,678