Finding Text
2022-001 Allowable Costs/Cost Principles Federal program information: Funding agency: U.S. Department of Treasury Title: Emergency Rental Assistance Program Assistance Listing number: 21.023 Award year: 2022 Criteria or Specific Requirement: Uniform guidance requires that grant expenses be allowable and comply with cost principle guidelines. Condition: Pursuant to our testing of disbursements and internal controls over disbursements, Wipfli LLP noted the following control deficiency and noncompliance: Eight of the 42 cash disbursements selected for testing were incorrect. These all related to utility payments, where the current portion due was paid out twice. The Authority submitted the same cost twice for reimbursement totaling $691 of the invoices tested. From our sample of 42 disbursements, we examined 8 utility payments consisting of $7,689. Total utility payments for the grant were $283,105. The sample was not a statistically valid sample. Context: We tested a sample of 42 non-payroll disbursements. Questioned Costs: $691. Effect: The program overpaid utility bills to participants and overstated grant expenditures. Cause: Program staff turnover and lack of supervisory monitoring contributed to internal control deficiencies and grant noncompliance. Repeat: Yes. Auditor?s Recommendation: We recommend the Authority provide proper training and supervision over employees responsible for cash disbursements to ensure federal grant expenditures are allowable. Views of Responsible Officials: We agree with the auditor's recommendation and have prepared a corrective action plan to correct this.