Finding Text
2022-006 Condition: Deficiencies Noted in Our Examination of Emergency Rental Assistance (ERA) Files
During the review of four (4) Emergency Rental Assistance Payments, the following deficiencies were noted:
2 Checks selected lacked appropriate approval for disbursement
2 Disbursements lacked compliance with ERA policies and sufficient support
Assistance Listing #: 21.023
Questioned Costs: Undetermined
Cause: The Authority’s deficiency in the area of cash disbursements is a lack of internal controls or the invoice approval process.
Effect: The Authority has not been in complete compliance with HUD regulations and internal control requirements to support invoices.
Criteria: 24 CFR requirements for Cash Disbursements Documentation
Recommendation: We recommend a review of the cash disbursement documentation process in order to ensure that each disbursement is fully documented prior to check issuance, and we further recommend an update of internal control policies and regular quality control reviews over cash disbursements to ensure compliance with HUD regulations.
Reply: Management agrees with the audit finding and the auditor’s recommendation. We will implement procedures and changes to ensure that this finding will be cleared by the subsequent fiscal year audit.