Audit 317920

2021-001 Condition: Deficiencies Noted in Maintenance of Tenant Files During the review of the Tenant Files from all programs, the following deficiencies were noted: 12 of 25 Rental files selected lacked a timely Annual Recertification 25 of 25 Rental files selected lacked a timely Annual Inspections Assistance Listing #: 14.867 Questioned Costs: None Cause: The Authority’s deficiency in its resident files stems from some lack of controls concerning HUD requirements and procedures. Effect: The Authority has not been in complete compliance with the above HUD and policy requirements. Criteria: 24 CFR requirements for Indian Housing eligibility. Recommendation: In general, we continue to recommend a review of the recertification process to determine areas of weakness. We also recommend more standardization in file organization of information. Reply: Management agrees with the audit finding and the auditor’s recommendation. We will implement procedures and changes to ensure that this finding will be cleared by the subsequent fiscal year audit.

2021-002 Condition: Deficiencies Noted in Cash Disbursements During the review of Cash Disbursement, the following deficiencies were noted: 3 checks selected for audit were not fully supported with receipts and invoices to support the disbursement 1 Credit Card Payments lacked support and disbursement explanation 13 Disbursements lacked signed contracts or procurement documentation 1 payroll check were paid in a manner inconsistent with policy for work performed Assistance Listing #: 14.867 and 21.023 Questioned Costs: Undetermined Cause: The Authority’s deficiency in the area of cash disbursements is a lack of internal controls or the invoice approval process. 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 an update of internal control policies and regular quality control reviews over cash disbursements to ensure compliance with HUD regulations. Reply: Management agrees with the audit finding and the auditor’s recommendation. We will implement procedures and changes to ensure that this finding will be cleared by the subsequent fiscal year audit.

2021-003 Condition: Deficiencies Noted in Maintenance of the Cash Receipts and Deposits and the Tenant Accounts Receivable During the review of twenty-five (25) Cash Receipts selected for audit, it was noted that the Authority did not make timely deposits and end of month reconciliations for all the receipts and deposits chosen. These deposit lags have created a reconciliation question for the fiscal year 2021. Assistance Listing #: 14.867 Questioned Costs: Undetermined Cause: The Authority’s deficiency stems from a lack of internal controls over tenant account and a loss of key personnel in this area. Effect: The Authority is not in compliance with numerous HUD requirements. Criteria: Annual Contributions Contracts Recommendation: We recommend that the Authority utilize the tenant software to properly account for tenant balances. Reply: Management agrees with the audit finding and the auditor’s recommendation. We will implement procedures and changes to ensure that this finding will be cleared by the subsequent fiscal year audit.

2021-004 Condition: Deficiencies Noted in Small Purchases Procurement During the review of the contracts selected for audit, it was noted that in all contracts, small purchases, and sealed bids the Authority did not follow their procurement policy or the Cheyenne Arapaho Tribe Covid Procurement Guidance during the Fiscal Year 2021. Assistance Listing #: 14.867 Questioned Costs: Undetermined Cause: The Authority's deficiency in procurement and contracts stems from a lack of certain controls concerning HUD requirements and procedures. Effect: The Authority has not been in complete compliance with the above HUD requirements. Criteria: HUD Regulation regarding 24 CFR 85.36 Recommendation: We recommend that all contracts have the same level of documentation of procurement for small purchases contracts and that the Authority add additional support for contracts where only one bid for services was available. Reply: Management agrees with the audit finding and the auditor’s recommendation. We will implement procedures and changes to ensure that this finding will be cleared by the subsequent fiscal year audit.

2021-001 Condition: Deficiencies Noted in Maintenance of Tenant Files During the review of the Tenant Files from all programs, the following deficiencies were noted: 12 of 25 Rental files selected lacked a timely Annual Recertification 25 of 25 Rental files selected lacked a timely Annual Inspections Assistance Listing #: 14.867 Questioned Costs: None Cause: The Authority’s deficiency in its resident files stems from some lack of controls concerning HUD requirements and procedures. Effect: The Authority has not been in complete compliance with the above HUD and policy requirements. Criteria: 24 CFR requirements for Indian Housing eligibility. Recommendation: In general, we continue to recommend a review of the recertification process to determine areas of weakness. We also recommend more standardization in file organization of information. Reply: Management agrees with the audit finding and the auditor’s recommendation. We will implement procedures and changes to ensure that this finding will be cleared by the subsequent fiscal year audit.

2021-002 Condition: Deficiencies Noted in Cash Disbursements During the review of Cash Disbursement, the following deficiencies were noted: 3 checks selected for audit were not fully supported with receipts and invoices to support the disbursement 1 Credit Card Payments lacked support and disbursement explanation 13 Disbursements lacked signed contracts or procurement documentation 1 payroll check were paid in a manner inconsistent with policy for work performed Assistance Listing #: 14.867 and 21.023 Questioned Costs: Undetermined Cause: The Authority’s deficiency in the area of cash disbursements is a lack of internal controls or the invoice approval process. 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 an update of internal control policies and regular quality control reviews over cash disbursements to ensure compliance with HUD regulations. Reply: Management agrees with the audit finding and the auditor’s recommendation. We will implement procedures and changes to ensure that this finding will be cleared by the subsequent fiscal year audit.

2021-003 Condition: Deficiencies Noted in Maintenance of the Cash Receipts and Deposits and the Tenant Accounts Receivable During the review of twenty-five (25) Cash Receipts selected for audit, it was noted that the Authority did not make timely deposits and end of month reconciliations for all the receipts and deposits chosen. These deposit lags have created a reconciliation question for the fiscal year 2021. Assistance Listing #: 14.867 Questioned Costs: Undetermined Cause: The Authority’s deficiency stems from a lack of internal controls over tenant account and a loss of key personnel in this area. Effect: The Authority is not in compliance with numerous HUD requirements. Criteria: Annual Contributions Contracts Recommendation: We recommend that the Authority utilize the tenant software to properly account for tenant balances. Reply: Management agrees with the audit finding and the auditor’s recommendation. We will implement procedures and changes to ensure that this finding will be cleared by the subsequent fiscal year audit.

2021-004 Condition: Deficiencies Noted in Small Purchases Procurement During the review of the contracts selected for audit, it was noted that in all contracts, small purchases, and sealed bids the Authority did not follow their procurement policy or the Cheyenne Arapaho Tribe Covid Procurement Guidance during the Fiscal Year 2021. Assistance Listing #: 14.867 Questioned Costs: Undetermined Cause: The Authority's deficiency in procurement and contracts stems from a lack of certain controls concerning HUD requirements and procedures. Effect: The Authority has not been in complete compliance with the above HUD requirements. Criteria: HUD Regulation regarding 24 CFR 85.36 Recommendation: We recommend that all contracts have the same level of documentation of procurement for small purchases contracts and that the Authority add additional support for contracts where only one bid for services was available. Reply: Management agrees with the audit finding and the auditor’s recommendation. We will implement procedures and changes to ensure that this finding will be cleared by the subsequent fiscal year audit.