The Home for Little WanderersNon-Profit

Finding ? Allowable Costs/Cost Principles and Reporting ? Emergency Solutions Grants Program, AL#14.231; June 30, 2022 Award Year; U.S. Department of Housing and Urban Development (HUD) Criteria or Specific Requirement Expenditures of Federal funds must be supported by appropriate documentation, along with internal controls over recording and review of costs and related invoicing. Condition Found Out of 40 invoices selected for testing relative to non-payroll costs, support for 1 invoice could not be located. Out of 19 payroll items tested, 12 selections had variances between the supporting documentation and the actual costs charged to the grant. An invoice submitted for reimbursement was found to contain supporting data from an invoice that had previously been submitted. On further review, appropriate support for these costs was located. Questioned Costs $8,279.87 ? known questioned costs. $34,313.82 ? likely questioned costs. Cause Controls over input and review of payroll costs, as well as controls over retention and review of supporting documentation, were not sufficient. Effect Correctness and accuracy of charges to grants could be affected. Recommendation Management should enhance its systems and practices with respect to document retention, billing and recording of payroll costs.