Finding 1155768 (2024-001)

14.128 Mortgage Insurance Hospitals U.S. Department of Housing and Urban Development Significant Deficiency Criteria: The Uniform Guidance requires appropriate internal controls over compliance for each direct and material compliance requirement. Proper controls should be established to ensure written consent from HUD prior to incurring new debt or lease arrangements is obtained. Condition: The System did not have a control process established to ensure written consent was obtained. Effect: The System did not maintain written consent from HUD prior to obtaining new lease arrangements. Cause: Lack of effectively designed and implemented controls around obtaining written consent from HUD regarding new debt or lease arrangements. Questioned Costs: None. Context: The new lease arrangements were tested and there were no approvals from HUD provided during that testing. Identification of Prior Year Finding: 2023-001 Recommendation: Management should establish effective controls over compliance to ensure the written consent is obtained prior to incurring new debt or lease arrangements. Views of responsible officers and planned corrective actions: See corrective action plan.