Finding Text
Department of Housing and Urban Development
Federal Financial Assistance Listing #14.241
Housing Opportunities for Persons with AIDS (HOPWA)
Reporting
Material Weakness in Internal Control Over Compliance and Material Noncompliance
Criteria Grantees receiving funding through the HOPWA program must complete and submit the
HUD-4155 Consolidated Annual Performance Report (APR) and Consolidated Annual
Performance and Evaluation Report (CAPER) (Consolidated APR/CAPER) no later than 90
days after the close of their program or operating year. The Consolidate APR/CAPER
provides information on program accomplishments that supports program evaluation
and the ability to measure program beneficiary outcomes as related to maintaining
housing stability, preventing homelessness, and improving access to care and support.
Condition Certain information related to Short-Term Rent, Mortgage and Utility (STRMU)
expenditures and Permanent Housing Placement (PHP) expenditures did not reconcile
between the Consolidated APR/CAPER and the general ledger. In addition, the
Consolidated APR/CAPER was not reviewed by someone other than the preparer prior
to submission.
Cause Internal controls in place did not ensure that the monthly expenditure information that
was summarized and used to prepare the Consolidated APR/CAPER was reconciled to
the general ledger. The monthly expenditure information did not take into account any
reconciling or other entries recorded after the monthly information was generated
which led to differences between the expenditures report in the Consolidated
APR/CAPER and the actual STRMU and PHP expenditures as reflected in the general
ledger. Internal controls were also not in place to ensure review of the supporting
documentation and the Consolidated APR/CAPER prior to submission.
Effect The lack of a reconciliation process from the expenditure information reported in the
Consolidated APR/CAPER to the general ledger increases the risk that information
contained in the Consolidated APR/CAPER and reported to the Department of Housing
and Urban Development will contain errors that are not detected and corrected by
employees. The Organization submitted a Consolidated APR/CAPER with incorrect
information.
Questioned Costs None reported.
Context The STRMU expenditures and the PHP expenditures were both tested and both amounts
reported in the Consolidated APR/CAPER did not agree to the general ledger.
Repeat Finding
From Prior Years No
Recommendation We recommend that the Organization enhance internal control policies to ensure all
amounts reported and submitted to federal agencies ar adequately documented and
supported. We also recommend that the Organization enhance internal control policies
to ensure that any required reports are properly reviewed prior to submission to ensure
all key line items are correct and supported. This review should be documented.
Views of Responsible
Officials Management agrees with the finding and has immediately initiated corrected reports
with the grantor and implemented extra procedures to review program required
reporting between Program and Finance Leadership prior to submission.