Finding 607318 (2022-004)

Material Weakness
Requirement
B
Questioned Costs
$1
Year
2022
Accepted
2023-06-20

AI Summary

  • Core Issue: Missing documentation for grant expenditures raises concerns about eligibility and compliance.
  • Impacted Requirements: Costs must be supported by adequate documentation, including contracts, invoices, and timesheets.
  • Recommended Follow-Up: The Alliance should explore ways to retrieve the missing documentation for questioned expenses totaling $1,143,058.77.

Finding Text

2022-4 Emergency Solutions Grant Program ? Assistance Listing No. 14.231, Grant No. APZ11, Grant Period ? Year Ended June 30, 2022, Covid Grants Material Weakness - Condition: As discussed in Finding Nos. 2022-1 and 2022-2, supporting documentation for grant expenditures was not located for these grants. Criteria: To be eligible for consideration as an allowable activity and be classified as an allowable cost, the cost must be adequately documented. Documentation should include contracts, invoices or receipts, timesheets supporting personnel charges, and a Purchase Request Form (PRF). Cause: Procedures are in place for supervisory approval of expenses and supporting documentation before assistance is authorized but documentation was apparently not filed correctly and may not have been retained. Effect: The cost of assistance may be disallowed. Context: Our review disclosed the following: ? For 5 of the 30 transactions tested, the expenses were adequately documented to support the fact that the activities were allowable. Although requested, documentation was not available for the other 25 test items totaling $985,309.26. ? Expenses totaling $1,143,058.77 were not adequately documented. For the 5 transactions for which documentation was not available, totaling $157,749.51, our review disclosed that there were no invoices or receipts from subrecipients who provided services to clients or PRF required by HHA procedures. Although requested, documentation was not available for 25 transactions totaling $985,308.26. Recommendation: The Alliance should consider options for obtaining documentation for the expenses for which supporting documentation could not be located. TOTAL QUESTIONED COSTS FOR EMERGENCY SOLUTIONS GRANT PROGRAM ? Assistance Listing No. 14.231, Grant No. APZ11 - $1,143,058.77 (included in Questioned cost of 2022-6 below)

Categories

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring Allowable Costs / Cost Principles Material Weakness

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.231 Emergency Solutions Grant Program $3.04M
14.267 Continuum of Care Program $330,170
93.558 Temporary Assistance for Needy Families $36,860
14.218 Community Development Block Grants/entitlement Grants $8,304