FAC Explorer

Finding 1157692 (2024-001)

Material Weakness Repeat Finding
Requirement
C
Questioned Costs
-
Year
2024
Accepted
2025-09-30
Audit: 369877
Organization: The Housing Authority of the City of Colmbus (MS)
Auditor: John Russell and Associates INC

AI Summary

  • Core Issue: The Housing Authority failed to reimburse rental assistance funds for two years, violating cash management requirements.
  • Impacted Requirements: A sound cash management system is necessary to ensure timely fund reimbursements.
  • Recommended Follow-Up: Strengthen internal controls to prevent future delays in fund reimbursements.

Finding Text

2024-001 – Cash Management COMPLIANCE REQUIREMENT: Cash Management CONDITION AND CRITERIA: Housing Authorities are required to have a sound cash management system in place to ensure that funds are reimbursed on a timely basis. During the current fiscal year audit, it was noted that the Housing Authority did not pay reimburse funds to the Public Housing Program for two years for rental assistance funds received from the State of Mississippi. TYPE OF FINDING: Significant Deficiency CAUSE: The internal control structure was not adequate to prevent these deficiencies. EFFECT: Funds were not reimbursed on a timely basis. QUESTIONED COSTS: None known. AUDITORS’ RECOMMENDATION: We recommend that the Housing Authority strengthen its internal controls to ensure funds are reimbursed on a timely basis.

Corrective Action Plan

Immediate Reimbursement: The Housing Authority will initiate the reimbursement of the Public Housing Program for the identified rental assistance funds. Policy and Procedure Updates: Internal cash management policies are being revised to establish clear timelines and responsibilities for fund reimbursements. Staff Training: All relevant personnel will receive training on HUD’s cash management requirements and the updated internal procedures to ensure consistent and timely compliance. Monthly Monitoring: A monthly reconciliation and review process will be implemented to monitor fund transfers and reimbursements. This will be overseen by the Finance Director and reported to the Executive Director quarterly. Fee Accountant Oversight: To strengthen financial oversight, the Housing Authority will engage a fee accountant to serve as an additional layer of review. This professional will provide independent verification of financial transactions and ensure compliance with HUD cash management standards.

Categories

Cash Management HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
14.872 Public Housing Capital Fund $2.16M
14.850 Public and Indian Housing $1.87M
84.287 Twenty-First Century Community Learning Centers $248,415
14.870 Resident Opportunity and Supportive Services - Service Coordinators $81,153