Finding Text
Expenditures charged to a federal program must be supported by adequate documentation and be reasonable and necessary for program operation. The Housing Authority has developed cost allocation plans in which a percentage of the Housing Authority’s expenses, such as payroll and benefit expenses, are charged to the federal program for administering the program. The Housing did not have controls in place to verify that costs allocated through the cost allocation plan were updated for changes in hours worked for individual programs. The Housing Authority could not provide adequate support for payroll expense allocation.