Finding Text
Finding Number 2024-002 In Process Federal Agency U.S. Dept. of Housing and Urban Development Federal Program Name Section 202 Capital Advance Assistance umber 14.157 Federal Award identification number and year MN46S971002-1997 Award period 2024 Compliance Requirement Affected S - Internal Controls Type of Finding Material Weakness - in Internal Control over Financial Reporting Material Weakness in Internal Control over Compliance Criteria Management is responsible for ensuring there are controls in place and they are being followed. Condition The Project should ensure internal control processes are documented and followed. Cause A formal review process had not been adopted during 2024, after the transition in management. The HUD approved budget for the 24-25 grant period, one replacement reserve withdrawal, and the bank reconciliations for August through December did not have documented review or approval. Effect Potential for incorrect reporting. Repeat Finding No Recommendation The Project should establish and follow a consistent review process for budgets, replacement reserve withdrawals, and bank reconciliations. Views of Responsible Officials and Planned Corrective Actions No disagreements with the finding. Management Response Management continues to review and establish monthly processes related to review and approval of budgets, replacement reserve withdrawals, and bank reconciliations.