Finding Text
Condition: Complete and adequate documentation was not available to demonstrate that program income (occupancy charges) from program participants under CFDA 14.267 – HUD Continuum of Care was properly assessed, calculated, collected, recorded, and monitored. Effect: Because this documentation was incomplete or missing, we were unable to determine that program income was correctly stated in the financial statements. It is possible that program income may not have been equitably assessed or fully collected, and amounts received may not have been properly deposited. The amount of program income collected was approximately $36,000 for this fiscal year. Based upon available records, it appears reasonable to expect program income could have been up to approximately $30,000 higher than the amount shown in the financial statements. Our test work did indicate all amounts collected were appropriately used for allowable program activities. Cause: The Organization did not have adequate written and monitoring procedures in place to ensure program income activities were consistently documented and reviewed. Criteria: Although program income was voluntarily assessed, best practices and federal internal control expectations require complete documentation of fee assessment, collection, and monitoring to ensure transparency and accountability. Recommendation: Although the program has been discontinued, the Organization should establish clear procedures for documenting and monitoring program income if program income is collected in the future.