Finding Text
Finding 2024-002 – Disbursement Support
Title and CFDA Number of Federal Program: Section 202 - Capital Advance – 14.157.
Type of Finding: Financial Statements and Federal Award.
Finding Resolution Status: Completed.
Information on Universe and Population Size: All disbursements during the year ended June
30, 2024.
Sample Size Information: 25 disbursements.
Identification of Repeat Finding and Finding Reference Number: This is not applicable.
Criteria: Twenty-five disbursements totaling $16,179 were selected for testing using the
haphazard method. Based on the selection, four disbursements totaling $1,414 were missing
supporting documentation.
Statement of Condition: Kanesville’s disbursements omitted required support in accordance
with the HUD handbook and PRAC contract.
Cause: Management agent did not maintain documentation on disbursements.
Effect or Potential Effect: Due to a lack of documentation, inaccurate financial reporting could
occur.
Auditor Code: S – Internal Control Deficiency.
Questioned Costs: $0.
Reporting View of Responsible Officials: Management agent should retain disbursement
supporting documents in compliance with HUD standards. This finding occurred when M3 was
managing the property. Kanesville hired a new management agent that is familiar with HUD
standards.
Context: See effect above.
Recommendation: Disbursement support should be retained to ensure compliance with HUD
standards.
Auditor Summary of the Auditees Comments on Findings and Recommendations: Document
and maintain disbursement supporting information in the future for inspection.
Response Indicator: Agreed.
Completion Date: August 16, 2024
Reporting Views of Responsible Officials / Corrective Action Plan / Management Agent
Response: Management agent is currently retaining documentation concerning disbursements
in compliance with the HUD handbook and PRAC contract.