Finding 1057106 (2023-008)

Material Weakness
Requirement
AB
Questioned Costs
-
Year
2023
Accepted
2024-08-07

AI Summary

  • Core Issue: The Organization failed to follow internal policies by not retaining documentation for the approval of eight cash disbursements.
  • Impacted Requirements: This oversight leads to noncompliance with Uniform Guidance regarding allowable activities and costs.
  • Recommended Follow-Up: Management should review and enhance their approval processes and ensure proper documentation retention in the finance department.

Finding Text

2023-008 Approval of Invoices Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: Passthrough Funds Pass-Through Agency: BCHA and WHEDA Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901 Award Period: January 1, 2023 – December 31, 2023 Compliance Requirement: Allowable Activities, Allowable Costs Type of Finding: Material Weakness in Internal Control over Compliance, Other Matter Criteria or specific requirement: The Organization did not follow their internal policies and retain supporting documentation related to the approval of all ACH and check transactions. Condition: During our testing, we noted that the Organization did not have supporting documentation to support approval of eight cash disbursements of the forty disbursements before the payment was made. Questioned costs: None Context: From a sample of 40 cash disbursements selected for testing, seven ACH's and one check did not have the supporting documentation to prove the disbursements were approved prior to payment being made. Cause: The Organization had turnover in the finance department during 2023 and either supporting documentation for the approval was misplaced or not retained for eight cash disbursements. Effect: The effect of not having a documented approval is noncompliance with Uniform Guidance. Repeat Finding: No Recommendation: We recommend that Management review their current policies and procedures to ensure there is an appropriate review and approval process in place and the finance department retains this supporting documentation (either paper approval or electronic approval). Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.

Categories

HUD Housing Programs Allowable Costs / Cost Principles Material Weakness Internal Control / Segregation of Duties

Other Findings in this Audit

  • 480643 2023-004
    Significant Deficiency
  • 480644 2023-004
    Significant Deficiency
  • 480645 2023-004
    Significant Deficiency
  • 480646 2023-004
    Significant Deficiency
  • 480647 2023-004
    Significant Deficiency
  • 480648 2023-005
    Significant Deficiency
  • 480649 2023-005
    Significant Deficiency
  • 480650 2023-005
    Significant Deficiency
  • 480651 2023-005
    Significant Deficiency
  • 480652 2023-005
    Significant Deficiency
  • 480653 2023-006
    Significant Deficiency Repeat
  • 480654 2023-006
    Significant Deficiency Repeat
  • 480655 2023-006
    Significant Deficiency Repeat
  • 480656 2023-006
    Significant Deficiency Repeat
  • 480657 2023-006
    Significant Deficiency Repeat
  • 480658 2023-007
    Significant Deficiency
  • 480659 2023-007
    Significant Deficiency
  • 480660 2023-007
    Significant Deficiency
  • 480661 2023-007
    Significant Deficiency
  • 480662 2023-007
    Significant Deficiency
  • 480663 2023-008
    Material Weakness
  • 480664 2023-008
    Material Weakness
  • 480665 2023-008
    Material Weakness
  • 480666 2023-008
    Material Weakness
  • 480667 2023-008
    Material Weakness
  • 1057085 2023-004
    Significant Deficiency
  • 1057086 2023-004
    Significant Deficiency
  • 1057087 2023-004
    Significant Deficiency
  • 1057088 2023-004
    Significant Deficiency
  • 1057089 2023-004
    Significant Deficiency
  • 1057090 2023-005
    Significant Deficiency
  • 1057091 2023-005
    Significant Deficiency
  • 1057092 2023-005
    Significant Deficiency
  • 1057093 2023-005
    Significant Deficiency
  • 1057094 2023-005
    Significant Deficiency
  • 1057095 2023-006
    Significant Deficiency Repeat
  • 1057096 2023-006
    Significant Deficiency Repeat
  • 1057097 2023-006
    Significant Deficiency Repeat
  • 1057098 2023-006
    Significant Deficiency Repeat
  • 1057099 2023-006
    Significant Deficiency Repeat
  • 1057100 2023-007
    Significant Deficiency
  • 1057101 2023-007
    Significant Deficiency
  • 1057102 2023-007
    Significant Deficiency
  • 1057103 2023-007
    Significant Deficiency
  • 1057104 2023-007
    Significant Deficiency
  • 1057105 2023-008
    Material Weakness
  • 1057107 2023-008
    Material Weakness
  • 1057108 2023-008
    Material Weakness
  • 1057109 2023-008
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $603,094
14.896 Family Self-Sufficiency Program $119,026