Finding 1173234 (2025-003)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2025

Accepted

2026-02-11

Audit: 386709

Organization: Indian Town Home Association (IL)

Auditor: CLIFTONLARSONALLEN LLP

AI Summary

Core Issue: Two disbursements lacked supporting invoices, violating documentation requirements.
Impacted Requirements: Compliance with 2 CFR 200, which mandates proper documentation for all disbursements.
Recommended Follow-Up: Strengthen record retention policies to ensure all disbursements have proper support.

Finding Text

Lack of Supporting Documentation Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Supportive Housing for the Elderly (Section 202) Mortgage Financing Section 202 Project Rental Assistance Contract Assistance Listing #: 14.157 Type of Finding: • Other Matter and Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: According to 2 CFR 200, all disbursements must be supported by appropriate documentation to ensure the accuracy and reliability of compliance with applicable regulations. Condition: We noted that two disbursements did not have supporting invoices. Questioned Costs: None Context: During the fiscal year there was a change in personnel and during that transition two invoices were misplaced. Cause: Management oversight. Effect: The absence of supporting documentation for disbursements increases the risk of financial misstatement and may lead to unauthorized or inappropriate transactions. Repeat Finding: No Recommendation: The Organization should strengthen their record retention policy to ensure that proper support for disbursements is maintained. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the finding. Management will maintain invoices for all disbursements.

Corrective Action Plan

Supportive Housing for the Elderly (Section 202) Mortgage Financing– FAL No. 14.157 Section 202 Project Rental Assistance Contract – FAL No. 14.157 Recommendation: The Organization should strengthen their record retention policy to ensure that proper support for disbursements is maintained. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: We will maintain invoices for all disbursements Name(s) of the contact person(s) responsible for corrective action: Jennifer Medearis Planned completion date for corrective action plan: January 30, 2026 If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Jennifer Medearis at 309-356-1112.

Other Findings in this Audit

1173229 2025-001

Material Weakness Repeat
1173230 2025-002

Material Weakness Repeat
1173231 2025-003

Material Weakness Repeat
1173232 2025-001

Material Weakness Repeat
1173233 2025-002

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
14.157	SUPPORTIVE HOUSING FOR THE ELDERLY	$1.82M