Finding 625978 (2022-001)

Significant Deficiency
Requirement
AB
Questioned Costs
-
Year
2022
Accepted
2023-08-22
Audit: 46801
Organization: Family Gateway, Inc. (TX)

AI Summary

  • Core Issue: The CFO is both preparing and approving payroll allocations, leading to potential conflicts of interest.
  • Impacted Requirements: Federal compliance requires that payroll expenses be reviewed by someone independent of the preparer.
  • Recommended Follow-Up: Implement a process for an independent review of payroll charges before reimbursement requests are submitted.

Finding Text

Major Federal Program: 14.231- Emergency Solutions Grant Program Compliance Requirements: Allowable Activities and Allowable Costs and Cost Principles Criteria: Payroll expenses charged to federal grants should be reviewed by someone other than the person calculating the allocation of payroll costs. Condition: ( ) Compliance Finding (X) Significant Deficiency ( ) Material Weakness Cause: The CFO is the preparer of the payroll allocation, and the approver of the request for reimbursements. Effect and Questioned Costs: Payroll charged to the grant could be over or under stated. Questioned costs are indeterminable. Recommendation: We recommend that a person outside of the CFO review and approve the payroll charges allocated to the grant prior to the CFO submitting the request for reimbursements. View of Responsible Officials: See Corrective Action Plan

Categories

Allowable Costs / Cost Principles

Other Findings in this Audit

  • 49536 2022-001
    Significant Deficiency
  • 49537 2022-002
    Significant Deficiency
  • 625979 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
21.019 Coronavirus Relief Fund $426,830
14.231 Emergency Solutions Grant Program $193,195
21.023 Emergency Rental Assistance Program $115,641
14.267 Continuum of Care Program $59,636
21.027 Coronavirus State and Local Fiscal Recovery Funds $25,069