Finding Text
Information of federal program
Section 202 Supportive Housing for the Elderly Federal Assistance Listing Number 14.157.
Questioned costs
$0
Criteria
Operating costs paid for services not provided is considered an unallowable cost.
Condition
Our consideration of internal control disclosed that the management company incorrectly approved a second
invoice for services rendered.
Cause
Bills were not correctly identified as previously paid before payment was authorized. Effect
Disallowed costs were identified, although the amount identified did not meet the threshold for reporting
as a questioned cost under the Uniform Guidance.
Recommendation
Management should review its controls over proper identification of costs associated with each
Organization.
Views of management
Management concurs.
Auditors’ summary of the auditee’s comments on the findings and recommendations
Management will reevaluate controls around invoice cancellation in efforts to minimize potential error going
forward.