Audit 16463

2022-1 Condition: Deficiencies Noted in Cash Disbursements During the review of Cash Disbursement, the following deficiencies were noted: 6 checks selected for audit were not fully supported with receipts and invoices to support the disbursement. Assistance Listing No.: 14.182 Questioned Costs: None Cause: The Authority?s deficiency in the area of cash disbursements is a lack of internal controls over invoice control and approval. Effect: The Authority has not been in complete compliance with HUD regulations and internal control requirements to support invoices. Criteria: 24 CFR requirements for Cash Disbursements Documentation Recommendation: We recommend a review of the cash disbursement documentation process in order to ensure that each disbursement is fully documented prior to check issuance, and we further recommend update of internal control policies and regular quality control reviews over cash disbursements to ensure compliance with HUD regulations. Reply: We concur with the Auditor?s recommendations. We will review the cash disbursement documentation process in order to ensure that each disbursement is fully documented. We will update internal control policies to ensure complete compliance with HUD regulations. Management has implemented procedures in order to clear this finding in FY 2023.

2022-2 Condition: Deficiencies Noted in Examination of New Construction Section 8 Tenant Files Eleven (11) New Construction Section 8 files were selected for audit: 1 file lacked accurate 3rd party income verification which resulted in an unverified rent calculation. 1 file lacked waiting list support for New Admission to the program. Assistance Listing No.: 14.182 Questioned Costs: None Criteria: 24 CFR requirements for public housing eligibility Cause/Effect: The Authority failed to recertify participants in a timely manner. Recommendations: We recommend the Authority implement internal control procedures which will eliminate such errors. Reply: We will review the internal control procedures over tenant file re-certifications and documents. Management has implemented procedures in order to clear this finding in FY 2023.

2022-1 Condition: Deficiencies Noted in Cash Disbursements During the review of Cash Disbursement, the following deficiencies were noted: 6 checks selected for audit were not fully supported with receipts and invoices to support the disbursement. Assistance Listing No.: 14.182 Questioned Costs: None Cause: The Authority?s deficiency in the area of cash disbursements is a lack of internal controls over invoice control and approval. Effect: The Authority has not been in complete compliance with HUD regulations and internal control requirements to support invoices. Criteria: 24 CFR requirements for Cash Disbursements Documentation Recommendation: We recommend a review of the cash disbursement documentation process in order to ensure that each disbursement is fully documented prior to check issuance, and we further recommend update of internal control policies and regular quality control reviews over cash disbursements to ensure compliance with HUD regulations. Reply: We concur with the Auditor?s recommendations. We will review the cash disbursement documentation process in order to ensure that each disbursement is fully documented. We will update internal control policies to ensure complete compliance with HUD regulations. Management has implemented procedures in order to clear this finding in FY 2023.

2022-2 Condition: Deficiencies Noted in Examination of New Construction Section 8 Tenant Files Eleven (11) New Construction Section 8 files were selected for audit: 1 file lacked accurate 3rd party income verification which resulted in an unverified rent calculation. 1 file lacked waiting list support for New Admission to the program. Assistance Listing No.: 14.182 Questioned Costs: None Criteria: 24 CFR requirements for public housing eligibility Cause/Effect: The Authority failed to recertify participants in a timely manner. Recommendations: We recommend the Authority implement internal control procedures which will eliminate such errors. Reply: We will review the internal control procedures over tenant file re-certifications and documents. Management has implemented procedures in order to clear this finding in FY 2023.