Condition: Disbursements were not supported by complete and verifiable evidence. The following errors were noted:
1 – Check amount did not agree with invoice amount for mileage reimbursement.
1 – Missing or incomplete documentation
1 – Check request was not signed by supervisor
1 – Check did no...
Condition: Disbursements were not supported by complete and verifiable evidence. The following errors were noted:
1 – Check amount did not agree with invoice amount for mileage reimbursement.
1 – Missing or incomplete documentation
1 – Check request was not signed by supervisor
1 – Check did not clear the bank within a reasonable time
Corrective Action: Management has established the proposed controls included in the previous audit, which match the Recommendations outlined in the Federal Awards Findings and Questioned Costs document: Management created a review tool checklist of all required forms for the frontline staff to use as reference, for the Housing Coordinator to review assistance requests and client charts; and for leadership to conduct randomized internal audits; updated the training curriculum for Housing Department staff; new frontline staff has been hired, and trained to include clarification of compliance elements, the rationale and their importance, and which forms satisfy each one. Management also decided to overhaul all department forms and has begun a review process. The goal is for the process to be completed, and new forms implemented, by November 1st, 2023.
In addition, management has implemented review of outstanding checks on a monthly basis as part of the reconciliation process. This has already helped management identify landlords who do not deposit checks in a timely manner, which results in outreach from the Housing Coordinator to confirm they received the check, and to request that they deposit it ASAP. Lastly, the Director of Finance has streamlined the payment process by implementing the use of direct deposits to make rent payments, which many landlords have already enrolled in. Management will continue encouraging enrollment in the direct deposit payment model, and will gradually phase out rent payments by check.
The results of the improved controls, and the direct deposit rent payment model, will be reflected in the FY 2022-23 Single Audit. As was explained in the previous corrective action (Finding 2022-002), some of these improvements were implemented in the first quarter of calendar year 2023.