Finding Text
Finding Number 2023-005 Internal Controls, United States Department of Housing and Urban Development, Economic Development Initiative, Community Project Funding Grants, ALN 14.251, January 1, 2023 through December 31, 2023 (Material Weakness).
Statement of Condition:
The Organization does not have a control requiring internal review with signature approval of the Schedule of Expenditures of Federal Awards before submitting to external auditors.
Questioned Costs:
None.
Criteria:
There is no internal review with signature approval of the Schedule of Expenditures of Federal Awards at the Organization before submitting to external auditors.
Cause:
The Organization did not have adequate controls in place ensuring the Schedule of Expenditures of Federal Awards internally with signature approval to ensure accuracy before submitting to external auditors.
Effect:
Amounts on the Schedule of Expenditures of Federal Awards could be incorrect, or federal expenditures could be missing from the schedule.
Recommendation:
We recommend the Organization create and implement controls to ensure the Schedule of Expenditures of Federal Awards is reviewed internally with signature approval before submitting to external auditors.
Management Response:
Management agrees with the finding. Controls are being implemented for an internal review with signature approval of the Schedule of Expenditures of Federal Awards before submitting to external auditors.