Deborah's Place and Affiliated OrganizationsNon-Profit

Federal Agency: U.S. Department of Housing and Urban Development Program: Continuum of Care Program Assistance Listing #: 14.267 Type of Finding: Significant deficiency in internal control over compliance Criteria: Recipients of federal funding are required by allowable cost principles to have a system of controls in place to safeguard organizational assets and ensure that only allowable costs are charged to federal programs. Additionally, 2 CFR 230 states that charges to federal awards for salaries and wages are to be supported by reports that reflect an after-the-fact determination of the actual activity of each employee and not to be based upon estimated amounts. Condition: Incorrect payroll percentages were used to allocate payroll costs to the grant, resulting in an incorrect amount being charged to the program. Cause: Staffing shortages led to inconsistent oversight over manual allocation of payroll costs. Effect: An incorrect allocation of payroll costs to the grant occurred. However, there were no overall questioned costs because the Organizations had other reimbursable costs available that were not previously allocated to the grant. Questioned Cost: $0 Identification as a Repeat Finding: No Recommendation: We recommend that payroll allocations be consistently reviewed by a responsible party.