Core Issue: There are significant deficiencies in internal controls over cash disbursements, leading to unsupported payments.
Impacted Requirements: Payments lacked necessary documentation, violating 24 CFR requirements for disbursements and payables.
Recommended Follow-Up: Conduct a thorough review of HUD and Housing Authority policies to ensure compliance and strengthen controls.
Finding Text
2022-005 Loss of Internal Controls Over Cash Disbursements – Significant Deficiency Condition: During the review of the payments made during FY 2022 the following deficiencies were noted: 1. Invoices were paid by the Authority that lacked sufficient support to document what was being paid for with detailed invoice support. 2. Billings and payments made to contractors did not include required procurement documentation. 3. Travel expenses paid lacked detailed support. Assistance Listing #: 14.871 Questioned Costs: Unknown Criteria: 24 CFR Requirements for Disbursements and Payables. Cause/Effect: The Authority did not perform the required program requirements, and they were not in complete compliance with HUD regulations or their own policies. Recommendation: We recommend a complete review of HUD and Housing Authority policies over disbursements to ensure compliance with these policies.
Corrective Action Plan
2022-005 – Loss of Internal Controls Over Cash Disbursements – Significant Deficiency Auditor Recommendations: The Authority should perform a complete review of HUD and Housing Authority policies over disbursements to ensure compliance with these policies. Response: We will implement reviews of HUD and Housing Authority policies, in addition to staffing changes, to ensure that this finding will be cleared by the subsequent fiscal year audit. Timeframe: By completion of the 2027 FYE audit Individual responsible for correction: Mr. Marc Starling, Executive Director
Categories
Procurement, Suspension & DebarmentHUD Housing ProgramsSignificant DeficiencyInternal Control / Segregation of Duties