Finding Text
Identification of the federal program: 14.267 – Continuum of Care Program
Significant deficiency in internal controls related to special tests and provisions
Criteria:
2 CFR Part 200.303 establishes internal control requirements over federal awards that provides reasonable
assurance the entity is managing the federal award in compliance with Federal Statutes.
Condition:
The Organization has established internal control procedures over special tests and provisions specifically as they
apply to reasonable rent, however, the procedures were not applied to all items tested during the audit. Eight files
were selected for testing, and one did not include evidence of internal control procedures being applied.
Cause:
The Organization had policies in procedures in place over special tests and provisions but they were not applied
consistently.
Effect:
Errors could be made in determining whether a unit’s rent is reasonable, and without the consistent application of
internal controls, these errors may go unnoticed resulting in a unit being rented whose fair market value rent is
outside of the parameters set by the Department of Housing and Urban Development.
Questioned Costs:
None
Recommendations:
We recommend the Organization consistently apply internal controls.
Views of responsible officials:
We agree we need to apply our internal controls as outlined in our policies and procedures consistently.
Seven of the eight files tested did follow our policies and procedures. During this fiscal year, we were negatively
impacted by the effects of COVID and experienced program manager turnover.
Program managers are following these processes on a consistent basis moving forward.