Audit 32033

2022-2 Condition: Deficiencies Noted in the Maintenance Debit and Credit Cards In a sample of five (5) months of Credit Card Payments reviewed, the following deficiencies are noted: 1. Fraudulent Charges made on the credit card during FY 2022 were not addressed by filing a claim with the credit card company until the FY 2022 audit. 2. Twelve (12) Months of credit cards and debit cards were not reconciled by matching receipts and payment approvals with the billings until the FY 2022 audit. 3. The Authority credit cards were used for non-Housing Authority business. Employee reimbursements for charges made during the five months selected were not done until FY 2023. 4. Allocations were made to the Low-Income Public Housing program for expenses not allowable for that program. CFDA Number: 14.850 Questioned Costs: None Criteria: 24 CFR regulations over support for payments made for Low Income Public Housing and activities allowed and unallowed for that program. Cause/Effect: The Authority?s lack of internal controls over credit card use and reconciliations has resulted in unsupported and inappropriate disbursements. Recommendation: We recommend that the Authority review the internal controls over disbursements in compliance with the Authority policy. We further recommend monthly reconciliations of the credit card payments in order to prevent fraud and misuse. Reply: We concur with this finding and the Auditor?s recommendation. We will review the internal control procedures over the maintenance of debit and credit cards. Management will implement procedures to clear this finding in FY 2023

2022-4 Condition: Loss of Internal Controls over Payments on Procurement During the review of the Florida Express contract awarded for FY 2022, the following deficiencies were noted: 1. Billings and payments made to the contractor were not reconciled to the procurement pricing listing. As a result of this payments were made for pricing inconsistent with the FY 2022 pricing list provided by Florida Express for the contract awarded. 2. Detailed bills provided from the contractor during the audit do not agree to procurement and no explanations were provided for the charges in excess of the procured amounts. 3. As of January 2023, the contractor was still not providing detailed billings in agreement with the FY 2023 pricing listings. CFDA Number: 14.850/14.872 Questioned Costs: None Criteria: 24 CFR Requirements for Low Income Public Housing and Capital Fund Program Procurement. Cause/Effect: The Authority lack of internal controls over payments on procurement resulted in incorrect amounts being paid to contractors. Additionally, we recommend that prior to payments being made the procurement is reviewed for pricing accuracy. Recommendation: We recommend that the Authority require billings from contractors in agreement with the procurement approved by the Board of Commissioners. Reply: We concur with this finding and the Auditor?s recommendation. We will require billings from contractors in agreement with the procurement approved by the Board of Commissioners and ensure that prior to payments being made, they are reviewed for pricing accuracy. Management will implement procedures to clear this finding in FY 2023

2022-2 Condition: Deficiencies Noted in the Maintenance Debit and Credit Cards In a sample of five (5) months of Credit Card Payments reviewed, the following deficiencies are noted: 1. Fraudulent Charges made on the credit card during FY 2022 were not addressed by filing a claim with the credit card company until the FY 2022 audit. 2. Twelve (12) Months of credit cards and debit cards were not reconciled by matching receipts and payment approvals with the billings until the FY 2022 audit. 3. The Authority credit cards were used for non-Housing Authority business. Employee reimbursements for charges made during the five months selected were not done until FY 2023. 4. Allocations were made to the Low-Income Public Housing program for expenses not allowable for that program. CFDA Number: 14.850 Questioned Costs: None Criteria: 24 CFR regulations over support for payments made for Low Income Public Housing and activities allowed and unallowed for that program. Cause/Effect: The Authority?s lack of internal controls over credit card use and reconciliations has resulted in unsupported and inappropriate disbursements. Recommendation: We recommend that the Authority review the internal controls over disbursements in compliance with the Authority policy. We further recommend monthly reconciliations of the credit card payments in order to prevent fraud and misuse. Reply: We concur with this finding and the Auditor?s recommendation. We will review the internal control procedures over the maintenance of debit and credit cards. Management will implement procedures to clear this finding in FY 2023

2022-4 Condition: Loss of Internal Controls over Payments on Procurement During the review of the Florida Express contract awarded for FY 2022, the following deficiencies were noted: 1. Billings and payments made to the contractor were not reconciled to the procurement pricing listing. As a result of this payments were made for pricing inconsistent with the FY 2022 pricing list provided by Florida Express for the contract awarded. 2. Detailed bills provided from the contractor during the audit do not agree to procurement and no explanations were provided for the charges in excess of the procured amounts. 3. As of January 2023, the contractor was still not providing detailed billings in agreement with the FY 2023 pricing listings. CFDA Number: 14.850/14.872 Questioned Costs: None Criteria: 24 CFR Requirements for Low Income Public Housing and Capital Fund Program Procurement. Cause/Effect: The Authority lack of internal controls over payments on procurement resulted in incorrect amounts being paid to contractors. Additionally, we recommend that prior to payments being made the procurement is reviewed for pricing accuracy. Recommendation: We recommend that the Authority require billings from contractors in agreement with the procurement approved by the Board of Commissioners. Reply: We concur with this finding and the Auditor?s recommendation. We will require billings from contractors in agreement with the procurement approved by the Board of Commissioners and ensure that prior to payments being made, they are reviewed for pricing accuracy. Management will implement procedures to clear this finding in FY 2023