Finding 628450 (2022-001)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-01-30
Audit: 43222
Organization: Deborah's Place (IL)

AI Summary

  • Core Issue: There was a significant deficiency in internal controls over payroll cost allocations for the Continuum of Care Program.
  • Impacted Requirements: Federal funding recipients must ensure payroll costs are based on actual employee activity, not estimates, as per 2 CFR 230.
  • Recommended Follow-Up: Implement regular reviews of payroll allocations by a designated responsible party to ensure accuracy.

Finding Text

Federal Agency: U.S. Department of Housing and Urban Development Program: Continuum of Care Program Assistance Listing #: 14.267 Type of Finding: Significant deficiency in internal control over compliance Criteria: Recipients of federal funding are required by allowable cost principles to have a system of controls in place to safeguard organizational assets and ensure that only allowable costs are charged to federal programs. Additionally, 2 CFR 230 states that charges to federal awards for salaries and wages are to be supported by reports that reflect an after-the-fact determination of the actual activity of each employee and not to be based upon estimated amounts. Condition: Incorrect payroll percentages were used to allocate payroll costs to the grant, resulting in an incorrect amount being charged to the program. Cause: Staffing shortages led to inconsistent oversight over manual allocation of payroll costs. Effect: An incorrect allocation of payroll costs to the grant occurred. However, there were no overall questioned costs because the Organizations had other reimbursable costs available that were not previously allocated to the grant. Questioned Cost: $0 Identification as a Repeat Finding: No Recommendation: We recommend that payroll allocations be consistently reviewed by a responsible party.

Categories

Allowable Costs / Cost Principles Internal Control / Segregation of Duties

Other Findings in this Audit

  • 52008 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.239 Home Investment Partnerships Program $3.16M
14.871 Section 8 Housing Choice Vouchers $849,317
14.231 Emergency Solutions Grant Program $335,482
14.267 Continuum of Care Program $53,846
21.027 Coronavirus State and Local Fiscal Recovery Funds $21,369
14.218 Community Development Block Grants/entitlement Grants $9,242