Finding 1130925 (2022-002)

2022-002 – INTERNAL CONTROL OVER COMPLIANCE MATERIAL WEAKNESS CRITERIA Per Uniform Guidance (2 CFR Part 200.302), the grantee must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the grantee is managing the Federal award in compliance with statutes, regulations, and the terms and conditions of the Federal award. CONDITION The Authority did not maintain proper supporting documentation of program expenses, and proper authorization of expenses could not be determined. CAUSE The Authority did not have proper controls over certain the Housing Choice Voucher program expenses. EFFECT This deficiency in internal controls resulted in unsupported transactions. QUESTIONED COSTS Likely questioned costs are estimated to be less than $25,000. CONTEXT We reviewed the Authority’s internal controls over compliance with federal awards. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend the Authority’s management review its internal control practices and ensure proper program authorization of program expenses. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.