Finding Text
Finding SA2020-002: Lack of Supporting Documentation for Expenditures
AL number: 14.850
AL Title: Public and Indian Housing
Name of Federal Agency: Department of Housing and Urban Development
Federal Award Identification number and year: CA010 (2020)
Criteria: 2 CFR part 200, subpart E, costs charged to federal funds must be allowable, reasonable, and
properly documented. Costs should be adequately supported to demonstrate they were necessary and
directly related to the deferral programs.
Condition: During our audit, we tested a sample of 51 transactions. Of these, 5 transactions with
amount $46,490 lacked sufficient supporting documentation to verify the nature and allowability of the
expenditures.
Cause: We understand that the staff overseeing the federal awards during fiscal year 2020 are no longer
with the Authority, and therefore, the staff overseeing the federal awards subsequent to the fiscal year
were unable to provide supporting and documentation was not properly maintained, resulting in
missing records to support certain expenditures.
Effect: The Housing Authority may have charged unallowable costs to the Operating Fund, resulting in
noncompliance with federal requirements.
Questioned Costs: We question the costs in the amount of $46,490 noted above.
Recommendation: The Housing Authority should develop and implement procedures to ensure that all
required documentation related to public housing expenditures is properly maintained and supported.
Staff responsible for approving and managing these records should be trained to ensure they
understand and comply with applicable program requirements.
Management Response: The Authority understands and accepts the recommendation to ensure that all
required documentation is maintained and accessible. The Authority staff will follow the City’s
processes by having management review invoices/charges for approval then will be scanned and
attached to the payment records in MUNIS.
In addition, the delay in timing to review and audit these records have allowed for documents to be
transferred offsite and not easily accessible.