Finding 1148839 (2024-001)

-
Requirement
B
Questioned Costs
-
Year
2024
Accepted
2025-08-01

AI Summary

  • Core Issue: A purchase of $15,019 was approved by a manager who could only authorize up to $1,000.
  • Impacted Requirements: All disbursements must be authorized by the appropriate management level.
  • Recommended Follow-Up: Ensure ongoing training and monitoring of cash disbursement controls to prevent future issues.

Finding Text

FINDING No. 2024-001: Section 236 Interest Reduction Payments, ALN 14.103 Finding Resolution Status: Resolved. Information on Universe Population Size: All disbursements for the year ended December 31, 2024. Sample Size Information: Twenty-five disbursements. Identification of Repeat Finding and Finding Reference Number: No. Criteria: All purchases must be authorized by the appropriate level of management prior to disbursement. Statement of Condition: A purchase was not authorized by the appropriate level of management. Cause: A transaction in the amount of $15,019 was approved by a member of management who only had authorization to approve transactions up to $1,000. Effect or Potential Effect: Potential unauthorized use of project funds. Auditor Non-Compliance Code: S – Internal control deficiencies. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendation has been adopted. Recommendation: Management should ensure adherence to and the monitoring of established controls over cash disbursements. Response Indicator: Agree. Completion Date: 10/30/2024 Response: Staff training has been provided. New manager has been advised regarding limits. This was a glitch in the OPS Spend Management system.

Categories

Procurement, Suspension & Debarment Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.103 Interest Reduction Payments Rental and Cooperative Housing for Lower Income Families $1.37M
14.195 Project-Based Rental Assistance (pbra) $659,875
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $226,681