Finding Text
2023-002 Support for Expenditures Material Weakness This is a repeat finding. The prior-year’s auditing finding number is 2022-002. Condition: Of the 161 voucher packages (invoice, purchase requisition, purchase order, check request, etc.) selected for testing 9 were missing. Of the remaining 152 voucher packages, 42 were missing approval signatures. Criteria: Part D. Cash Disbursement Contol Procedures of the Housing Authority’s policies states that “The employee designated by the Finance Manager shall initiate each transaction completing a “check request” form, which shall be presented to the Finance Manager for approval…The Finance Manager shall review the check requests and attached supporting documentation for completeness and accuracy. The Finance Manager shall ensure that the vendor’s invoice/billing statement accords with the terms of the purchase, that the goods have been received and conform to specifications or that the services billed have been rendered satisfactory…” Section 300.302 Financial Management of the Office of Management and Budget’s Uniform Guidance includes the following financial management system requirements: • Records must be maintained that adequately identify the source and application of funds for federally funded activities. These records must… be supported by source documentation. Cause: The check request forms may have been misplaced or were possibly not completed and approved prior to the purchases. Effect: The lack of support and documentation of approval of these expenditures could cause the Housing Authority to have inappropriate expenditures being paid. Questioned Costs: $17,886. Recommendation: Auditors recommend the governing board require proper documentation on all types of expenditures and that only members of the board have the authority to sign checks. Views of Responsible Officials: See Corrective Action Plan.