Finding Text
U.S. Department of Housing and Urban Development ‐ CFDA #14.267
Continuum of Care Program
Applicable Federal Award Number and Year – AZ0089L9T022114, AZ0170L9T022106, AZ0170L9T022005, AZ0132L9T022109, AZ0132L9T022008, AZ0192L9T022003, AZ0192L9T022104, AZ0090L9T022013 ‐ 2023 / 2022
Matching, Level of Effort, Earmarking
Significant Deficiency in Internal Control over Compliance
Criteria: No more than 10 percent of any grant awarded may be used for paying the costs of administering the assistance. Administrative costs include the costs associated with general management, oversight, and coordination, training on the CoC program requirements, and environmental review. Administrative costs do not include costs for CoC planning activities and UFA costs (24 CFR section 578.59).
Condition: During out testing, we identified differences in the amounts in the grant billing worksheets and the amounts recorded in the general ledger for administrative expenses.
Cause: The Organization has experienced significant staff turnover and the Organization’s controls are currently not adequately designed and operating.
Effect: The amounts reported in the billing worksheets didn’t agree to the amounts recorded in the general ledger. For administrative expenses.
Questioned Costs: None reported.
Context/Sampling: Not applicable.
Repeat Finding from Prior Year: No
Recommendation: The Organization should implement internal controls to ensure the amounts reported in the grant billing worksheets agree to the general ledger.
Views of Responsible Officials: Management agrees with the finding.