Finding Text
Criteria: The housing opportunity program lacks segregation of duties over the program participants' eligibility, rent and utility assistance calculation and program reporting.
Condition and Context: Internal controls were lacking with verifying the participant’s eligibility, rent and utility assistance calculations and complying with the reporting guidelines.
Effect: While testing a sample of forty program transactions, no issues of noncompliance were noted. However, the lack of segregation of duties and related internal controls over the program could lead to misappropriation of assets and/or noncompliance with the program requirements. The annual performance and evaluation report was filed timely by the preparer without a reviewer’s approval.
Cause: Segregation of duties and control procedures were not implemented and regularly maintained.
Recommendation: Internal control processes could be implemented with another level of review over the program activities, including rent/utility calculations, participants' eligibility, and reporting.
Management Response: Management agrees with the finding. Procedures are being implemented to ensure appropriate segregation of duties and related controls are established and followed, see attached corrective action plan.