Finding Text
MW 2022-004 Review of Reimbursement Requests and Expenses Federal Award: 14.231 Emergency Solutions Grant Program 2022 Funding Department of Housing and Urban Development Passed through the Florida Department of Children and Families Contract No. GPZ48 Criteria: 2 CFR 200.303 requires non-federal entities to establish and maintain effective internal controls. Reimbursement requests and monthly expense reports should be subject to independent review to verify the completeness and accuracy of the request and attached support. Condition: Detail attached to the reimbursement requests and monthly expense reports did not consistently support the amount requested for reimbursement. Detail attached to the reimbursement requests and monthly expense reports did not consistently support the amount requested for reimbursement. Individual payroll and non-payroll expenses were not consistently subject to review for allowability. Cause: Staff mistakenly omitted required support or input incorrect amounts. Staff mistakenly submitted a disallowed expense within a reimbursement request discovered by the pass through entity. Effect: A reimbursement request included errors and unsupported expenses. The grantor identified the errors and omissions and required the reimbursement request be resubmitted with the corrections and required support. The Organization did not have procedures to document the review of individual payroll and non-payroll expenses for allowability. Questioned Costs: None Perspective: The Executive Director has implemented procedures to organize reimbursement request and monthly expense documentation to make it easier to ensure the completeness and accuracy of the submissions to the grantor. However, these documents are often very long, and human error may not be completely avoidable through the current method of documentation. Recommendation: Review of reimbursement requests and monthly expense submissions should be documented and ensure the completeness and accuracy of the submission. Review of individual payroll and non-payroll expense allowability should be documented. Management Response: Since the prior audit, we implemented several changes which affect the repeated findings. We have already implemented the recommended process for the review of reimbursement requests and monthly expense submissions. These are documented to ensure the completeness and accuracy of the submission. We also implemented the documentation of the review of individual payroll and non-payroll expense allowability. The fiscal year 20-21 audit report was issued on June 30, 2022. The change in the fiscal year resulted in a 12-hour turnaround making it difficult to clear the findings and implement the recommended changes from last year's audit.