Finding 1137841 (2024-002)

Low Rent Program-CDFA#14.850, Section Eight Housing Choice Voucher Program-CDFA#14.871 Finding 2024-002-Internal Controls Inadequate for Disbursements-Allowable Costs Criteria and Condition Good internal controls should be in place to make sure that disbursements are for eligible payments, are correctly classified, and are timely paid. Good controls ensure that there is proper, documented review of all of these functions. Records should be maintained in an order that is conducive to efficient and timely summarizing by the outside fee accounting firm. Unaudited financial statements should be produced on a timely basis, and reviewed timely by the board of commissioners. Context In our initial sample of sixty disbursements that totaled $440,228, ten of the sixty were unsupported. The unsupported totaled $10,718. Of the total VISA payments of $20,060, $15,179 were unsupported. A total of $25,897 in our tests were unsupported. Effect Unsupported payments were made. Cause These issues have been noticed with this entity for years. Questioned Costs $25,897 Recommendation Management should make sure that all disbursements are adequately supported. View of Responsible Official and Planned Corrective Action We will comply with the auditor’s suggestions.