Finding Text
Subject: Section 8 Housing Choice Voucher Program Federal Agency: Department of Housing and Urban Development Federal Program: Section 8 Housing Choice Vouchers Assistance Listing Number: 14.871 Federal Award Number and Year (or Other Identifying Number): CY 2024 Pass-Through Entity: Not applicable Compliance Requirement: Allowable Costs Audit Finding: Significant Deficiency Condition and Context: During the review of disbursements, it was noted the Housing Authority does not consistently document approval of disbursements prior to payment. Our sample of cash disbursements revealed that checks and electronic payments were processed without evidence of review or authorization by management. Criteria: Per 2 CFR §200.302(b)(3), non-Federal entities must maintain effective internal control over Federal awards that provides reasonable assurance that charges to Federal programs are allowable, allocable, and in compliance with laws, regulations, and the provisions of contracts or grant agreements. Additionally, sound internal control practices require that disbursements be reviewed and approved to ensure they are valid, properly supported, and in compliance with program requirements. Cause: The Authority has not implemented procedures requiring documented review and approval of disbursements before payment is made. Effect: Without documented approval of disbursements, there is an increased risk of unauthorized, unsupported, or unallowable expenditures. Questioned Cost: Known and projected misstatement: None Recommendation: The Housing Authority should implement policies and procedures that require all disbursements to be approved by the Board prior to checks being issued.