Finding 1226399 (2025-001)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2025
Accepted
2026-08-12

AI Summary

  • Core Issue: The Housing Authority lacked written proof of invoice authorizations, indicating a significant deficiency in internal controls.
  • Impacted Requirements: Compliance with internal control requirements for authorizing transactions was not met.
  • Recommended Follow-Up: Strengthen internal controls to ensure all invoices have proper written authorizations.

Finding Text

PART B: FINDINGS – FINANCIAL STATEMENTS AUDIT 2025-001 – Internal Controls Compliance Requirement: Internal Controls Condition and Criteria: Housing Authorities are required to have a sound internal control system in place to authorize transactions. During the current fiscal year audit, it was noted that the Housing Authority could not provide written proof of invoice authorizations by a Housing Authority Official. It should be noted that the Housing Authority did review the invoices and verified that the work was done. It was also noted that the Housing Authority implemented this procedure before the end of fieldwork. Type of Finding: Significant Deficiency Cause: The internal control structure was not adequate to prevent these deficiencies. Effect: There was no written proof of authorization of invoices. Questioned Costs: None known. Auditors’ Recommendation: We recommend that the Housing Authority strengthen its internal controls to ensure that invoices have written authorizations. Corrective Action Plan: See attached response from Executive Director on page 39. PART C: FINDINGS AND QUESTIONED COSTS – MAJOR FEDERAL AWARD PROGRAMS AUDIT 2025-001 – Internal Controls This finding is not restated - See Part B. for further information.

Corrective Action Plan

The issue was corrected before the audit concluded. A written invoice authorization proess is in place, and all invoices now require written approval before processing.

Categories

Questioned Costs Significant Deficiency Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
14.850 PUBLIC AND INDIAN HOUSING $755,963
14.872 PUBLIC HOUSING CAPITAL FUND $555,460