Finding Text
2024-002 – ACTIVITIES ALLOWED OR UNALLOWED
Other Matter/Significant Deficiency
U.S. Department of Housing and Urban Development
CFDA #: 14.871 – Housing Choice Voucher Program
CRITERIA
The Pembroke Housing Authority has a policy that all checks require the signature from 2
board members. The dual signature policy was established to reduce the likelihood that
personnel will write improper checks to themselves or write checks to a fictitious company.
By requiring two signatures, the Authority is verifying that both signers agree that the
payment is proper and reasonable.
CONDITION
We reviewed the check images included on the bank statements for the administration
account and the Section 8 account for the fiscal year and identified 449 instances where a
check signature stamp was used and 20 instances where the check had only 1 signature.
The check stamp used included the signature of an individual who is no longer a member
of the Board.
CAUSE
The Authority’s controls related to reviewing and updating the authorized signatories on
bank accounts was insufficient.
EFFECT
As a result of not following its policy, there is an increased likelihood of unauthorized
disbursements being made.
QUESTIONED COSTS
None Identified.
CONTEXT
The Authority processed 869 checks from these 2 accounts of which 469 did not follow
their policy regarding authorized check signers. This was identified in March 2024.
Subsequent to March 2024, we did not identify any instances of checks with only 1
signature or the use of the check stamp.
REPEAT FINDING
See finding 2023-002.
RECOMMENDATION
We recommend that management review the authorized signatories on all accounts,
updating them if necessary, and ensure that disbursements have two valid signatures before
processing the payment.
AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION
See Corrective Action Plan.