Finding 607324 (2022-010)

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

AI Summary

  • Core Issue: Payments were made to related parties without proper documentation, raising concerns about their validity.
  • Impacted Requirements: Internal controls failed to ensure that expenses were adequately supported, violating grant compliance.
  • Recommended Follow-Up: Implement a review process to ensure procedures are followed and deficiencies are identified promptly.

Finding Text

2022-10 Emergency Solutions Grant Program ? Assistance Listing No. 14.231, Grant No. APZ11, Grant Period ? Year Ended June 30, 2022, Covid Grants Condition: As described in Finding 2022-3 above, payments were made to related parties for which there was no supporting documentation. We requested but were not provided documentation, such as invoices or contracts to support expenditures. Although we were able to verify that the checks were made payable to the vendor recorded in the accounting records, we could not determine that the expenditure served a valid business purpose and complied with grant or contract requirements. Criteria: Internal controls should be in place that provide reasonable assurance that sufficient appropriate evidence to document the expenses. Cause: Procedures were not followed, and the deficiency was not detected on a timely basis. Effect: Because of the failure to follow procedures, a material amount of expenses was not documented. Context: Three disbursements totaling $9,078 made through March 23, 2023. Recommendation: Procedures should be followed and a review process to provide assurance that failure to follow procedures is detected on a timely basis. TOTAL QUESTIONED COSTS FOR EMERGENCY SOLUTIONS GRANT PROGRAM? Assistance Listing No. 14.231, Grant No. APZ11 - $9,078 (included in Questioned Costs reported above)

Categories

Questioned Costs Internal Control / Segregation of Duties

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