Finding Text
Finding 2022-002 Information of federal program Section 202 Supportive Housing for the Elderly Federal Assistance Listing Number 14.157. Questioned costs $0 Criteria Operating costs paid on behalf of another Organization is considered an unallowable cost. Condition Our consideration of internal control disclosed that the management company incorrectly segregated utility invoices between two Organizations. Cause Utility bills were not correctly identified and segregated 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 reimburse the Organization for amounts that were not owed by the Organization.