Core Issue: Significant gaps in cash disbursement processes, including missing vendor invoices and lack of approval.
Impacted Requirements: Compliance with documentation and approval protocols, leading to potential financial discrepancies.
Recommended Follow-up: Implement a review process to ensure all vendor invoices are available, properly approved, and traceable to the general ledger.
Finding Text
During our testing of cash disbursements, we noted the following: 1. Vendors’ invoices were unavailable for examination purposes. 12 (twelve) exceptions were noted 2. Vendor invoices were not approved by an authorized individual for payment. 31 (thirty-one) exceptions noted. 3. Vendor names could not be traced to the general ledger. 38 (thirty-eight) exceptions noted. 4. Cancelled checks were unavailable for examination purposes. 4 (Four) exceptions were noted.
Corrective Action Plan
The Project has procedures in place to record transactions in accordance with HUD requirements. The Project will ensure that all procedures are followed to authorize, maintain, accurately record, and cancel vendor invoices.