Finding Text
Program:
Supportive Housing for the Elderly
Award Period:
July 1, 2022 through April 17, 2023
a) Criteria or Requirement
Per 2 CFR 200.303, the non-Federal entity must establish and maintain effective internal control
over the federal awards that provides reasonable assurance that the non-federal entity is managing
the federal awards in compliance with federal statues, regulations, and the terms and conditions of
the federal awards.
b) Condition Found, Including Perspective
During our test work, we selected a sample of 25 non-payroll disbursements made during the 2023
fiscal period. We noted one instance in which an expenditure was approved for payment based on
the incorrect distribution account of the vendor invoice to Assisi, which included applicable amounts
for other affiliated entities. The unallowable cost was $1,638 for the period.
c) Possible Cause
Assisi has a management review process to review invoices and related documentation before
payments are disbursed. Assisi management review control that was in place did not operate
effectively to prevent unallowable charges and inaccurate allocated amounts.
d) Questioned Cost
None reportable.
e) Effect
Funds were expended for unallowable purposes or for inaccurate amounts and evidence of the
effective operation of management review controls was not maintained in accordance with Federal
requirements.
f) Statistical Validity
The sample was not intended to be, and was not, a statistically valid sample.
g) Repeat Finding in the Prior Year
Not a repeat finding.
h) Recommendation
We recommend Assisi strengthen controls over the management review process to prevent
unallowable costs and inaccurate amounts from being allocated to Federal programs.
i) View of Responsible Officials
Management concurs with the finding. While appropriate controls exist relative to management
review and analysis of expenditures, opportunity exists to further enhance controls.