Finding 617899 (2022-002)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-06-29
Audit: 37694
Auditor: Wipfli LLP

AI Summary

  • Core Issue: Cumulative expenditure amounts were not reported on the SFS-425 for various federal programs, leading to significant underreporting and overreporting.
  • Impacted Requirements: The SFS-425 Federal Financial Report must be submitted quarterly with cumulative totals from the award's inception.
  • Recommended Follow-Up: Ensure future SFS-425 submissions include cumulative expenditure amounts as per the auditor's recommendation; corrective action plans are in place.

Finding Text

2022-002 Reporting - SFS-425 Federal program information: Funding agency: U.S. Department of Treasury & U.S. Department of Housing and Urban Development Title: Emergency Rental Assistance Program & Indian Housing Block Grant (IHBG) Assistance Listing number: 21.023 & 14.867 Award year: 2022 Criteria or Specific Requirement: The SFS?425 Federal Financial Report is required to be submitted quarterly. Cumulative amounts from the date of the inception of the award through the end of the reporting period are required to be reported. Condition: We inspected the 4th Quarter SFS-425 Financial Reports during the audit. Claims submitted for this program did not include the cumulative expenditure amounts. The actual expenditures for the IHBG program recorded on the general ledger totaled $1,836,852. The cumulative total expenditures were $1,063,865 for this program at 9/30/22. The IHBG CARES grant did not have a federal share of expenditures reported. The cumulative total expenditures were $37,524 for this program at 9/30/22. The IHBG ARP grant did not have a federal share of expenditures reported. The cumulative total expenditures were $37,136 for this program at 9/30/22. The actual expenditures for the ERAP program recorded on the general ledger totaled $568,872 at 12/31/2021. Questioned Costs: None. Effect: Expenditures for the IHBG program were under reported by $772,987 on the SFS-425, expenditures were under reported for the IHBG CARES program by $37,524 on the SFS-425 and expenditures were under reported for the IHBG ARP program by $37,136 on the SFS-425. The expenditures were over reported for the ERAP program by $308,079 on the SFS-425. Cause: The claims were prepared using quarterly amounts instead of the cumulative totals. Repeat: Yes. Auditor?s Recommendation: We recommend that the SFS-425 include cumulative expenditure amounts. Views of Responsible Officials: We agree with the auditor's recommendation and have prepared a corrective action plan to correct this.

Categories

Reporting

Other Findings in this Audit

  • 41457 2022-002
    Significant Deficiency Repeat
  • 41458 2022-002
    Significant Deficiency Repeat
  • 41459 2022-001
    Significant Deficiency Repeat
  • 41460 2022-002
    Significant Deficiency Repeat
  • 617900 2022-002
    Significant Deficiency Repeat
  • 617901 2022-001
    Significant Deficiency Repeat
  • 617902 2022-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.867 Indian Housing Block Grants $1.84M
21.023 Covid-19-Emergency Rental Assistance Program $977,982
10.427 Rural Rental Assistance Payments $273,470
21.026 Covid-19-Homeowner Assistance Fund $173,492
14.867 Covid-19-Indian Housing Block Grants $157,894
10.415 Rural Rental Housing Loans $124,589