Finding Text
Department of Housing and Urban Development, Passed through Hearth Connections
Continuum of Care, Federal Financial Assistance Listing #14.267
Period of Performance
Significant Deficiency in Internal Controls Over Compliance
Grant Award Number: Affects all grant awards included under Federal Financial Assistance Listing 14.267 on the Schedule passed through Hearth Connections.
Criteria: Internal controls should be designed and operating to ensure that documentation that is maintained by the Organization that supports the reimbursement amount received from the passthrough entity for supportive services.
Condition: During our testing, we identified one month in which the reimbursement amount received from the pass‐through entity was more than the Organization’s documentation.
Cause: The Organization’s controls did not operate as designed, which resulted in the reimbursement amount from the pass‐through entity being more than the support maintained by the Organization for one of the 12 months.
Effect: Inadequate internal controls over compliance could result in noncompliance with the federal program.
Questioned Costs: N/A
Context/Sampling: A nonstatistical sample of four months participants out of 12 were selected for testing.
Repeat Finding from Prior Years: Yes, prior year finding 2022-002.
Recommendation: We recommend management revise their internal controls to make sure the forms submitted are reviewed by the Organization prior to submission.
Views of Responsible Officials: Management agrees with the finding.