Finding Text
Assistance Listing Number, Federal Agency, and Program Name: 14.181, U.S. Department of Housing and Urban Development, Section 811 Project Rental Assistance Contract. Federal Award Identification Number and year: N/A Pass-through entity: N/A Finding type: Significant deficiency Repeat finding: No Criteria or specific requirement: Internal controls should exist to ensure adequate support is maintained for disbursements. Condition: All disbursements need either an approved invoice or credit card receipt for the amount charged to the grant. Questioned costs: Questioned costs were below the $25,000 threshold. If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported: N/A Identification of how questioned costs were computed: N/A Context: Of the 42 disbursements tested, there were 2 credit card charges for which no supporting receipts could be provided. The total of all disbursements tested was $30,227 and the missing receipts totaled $1,666. The total population of disbursements was $118,317. The calculated projected error was $6,521 which was determined by dividing the missing receipt total by the population tested total, multiplied by the total disbursements available for testing. Cause: Internal controls were not adequately followed. Effect: Cost may not be necessary, reasonable, or allowable per grant guidelines. Recommendation: We recommend that the Organization review its internal controls related to disbursements to ensure all invoices or credit card receipts are maintained. Views of responsible officials and planned corrective action: Management agrees with the finding. Imagine! will send out a communication to all employees reviewing the current internal control process that requires receipts and/or invoices from vendors to be attached to credit card disbursements. Employees who do not abide by the process are subject to losing credit card privileges.