Finding 1097552 (2024-001)

Material Weakness
Requirement
C
Questioned Costs
$1
Year
2024
Accepted
2025-02-03

AI Summary

  • Core Issue: Missing receipts for credit card payments totaling $19,088, leading to potential mismanagement of funds.
  • Impacted Requirements: Lack of proper documentation violates federal guidelines for maintaining transaction records.
  • Recommended Follow-Up: Management must reconcile accounts and secure necessary documentation by 10/31/2024 to ensure compliance.

Finding Text

Finding Reference Number: 2024-001 Federal Programs: Section 202 Direct Loan (CFDA 14.138) Type of Finding: Federal Award Finding Finding Resolution Status: Unresolved Criteria: Proper documentation should be maintained for all transactions. Statement of Condition: Credit card payments totaling $19,088 are not substantiated with proper receipts and credit card balances were not reconciled. Cause: Property management was paying new balances on credit card statements which included past due amounts. Accounting was not receiving details of payments and therefore potentially coding expenses to incorrect accounts. Effect or Potential Effect: Noncompliance and potential payment of duplicate or unauthorized expenses. Auditor Noncompliance Code: Cash management Questioned Costs: $19,088 Recommendation: Management should reconcile accounts and obtain source documents and receipts. Completion Date: 10/31/2024 Reporting Views of Responsible Officials: Management agrees with the finding and is continuing to implement changes to internal controls with the new property manager to assure proper documentation and reporting in the future.

Categories

Questioned Costs Student Financial Aid Cash Management Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 521110 2024-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.138 Mortgage Insurance_rental Housing for the Elderly $3.25M
14.195 Section 8 Housing Assistance Payments Program $676,028