Finding 977891 (2023-101)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-06-21

AI Summary

  • Core Issue: Payments to subrecipients were not made within the required 30-day period for 8 out of 30 reviewed cases.
  • Impacted Requirements: Compliance with federal regulations (CFR § 576.203(c)) regarding timely payments to subrecipients is at risk.
  • Recommended Follow-Up: Implement policies to document drawdown requests and maintain records to justify any payment delays.

Finding Text

Finding 2023-101 — Timeliness of Subrecipient Payments – Significant Deficiency in Internal Controls over Compliance (Special Tests) Federal program information: Funding agencies: U.S. Department of Housing and Urban Development Titles: Emergency Shelter Grants Program Assistance Listing Number: 14.231 Award numbers: C21-0580, 154900, 152126-0, ADES18-206228 Pass-Through grantors: City of Glendale, Arizona, City of Phoenix, Arizona and Arizona Department of Economic Security Compliance Requirements: Special Tests – Payments to Subrecipients Questioned Costs: N/A Criteria: Code of Federal Regulations § 576.203(c) Obligation, expenditure and payment requirements state that recipients of ESG funds must pay each subrecipient for allowable costs within 30 days after receiving the subrecipient’s complete payment request. Condition: For 8 of 30 subrecipient payments selected for review it was noted that the payments were not made within the 30 day allowable period. Per discussion with management it was determined that the payments were not made within the time limit as a result of missing or inaccurate information in the subrecipient’s drawdown requests. However, no additional documentation could be provided to show that items were missing from the drawdown requests. Cause and Effect: The organization does not have adequate policies and procedures in place to document the subrecipient drawdown review and they did not maintain adequate supporting documentation to show draw down requests were incomplete. The result is that there is increased chance of non-compliance with the requirements of the grant. Auditors’ Recommendations: The organization should establish policies and procedures to ensure that drawdown requests are documented when received and should maintain adequate documentation to substantiate delays in payments made to subrecipients.

Categories

Cash Management Subrecipient Monitoring Allowable Costs / Cost Principles Significant Deficiency

Other Findings in this Audit

  • 401449 2023-101
    Significant Deficiency Repeat
  • 401450 2023-101
    Significant Deficiency Repeat
  • 401451 2023-101
    Significant Deficiency Repeat
  • 401452 2023-101
    Significant Deficiency Repeat
  • 401453 2023-102
    Significant Deficiency Repeat
  • 401454 2023-103
    Significant Deficiency
  • 401455 2023-103
    Significant Deficiency
  • 401456 2023-103
    Significant Deficiency
  • 401457 2023-103
    Significant Deficiency
  • 401458 2023-103
    Significant Deficiency
  • 401459 2023-103
    Significant Deficiency
  • 401460 2023-103
    Significant Deficiency
  • 401461 2023-103
    Significant Deficiency
  • 401462 2023-103
    Significant Deficiency
  • 977892 2023-101
    Significant Deficiency Repeat
  • 977893 2023-101
    Significant Deficiency Repeat
  • 977894 2023-101
    Significant Deficiency Repeat
  • 977895 2023-102
    Significant Deficiency Repeat
  • 977896 2023-103
    Significant Deficiency
  • 977897 2023-103
    Significant Deficiency
  • 977898 2023-103
    Significant Deficiency
  • 977899 2023-103
    Significant Deficiency
  • 977900 2023-103
    Significant Deficiency
  • 977901 2023-103
    Significant Deficiency
  • 977902 2023-103
    Significant Deficiency
  • 977903 2023-103
    Significant Deficiency
  • 977904 2023-103
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.218 Community Development Block Grants/entitlement Grants $2.00M
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.63M
93.667 Social Services Block Grant $677,635
97.024 Emergency Food and Shelter National Board Program $661,233
14.231 Emergency Solutions Grant Program $285,908
93.558 Temporary Assistance for Needy Families $129,632
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $88,878