Finding 1239415 (2025-002)

2024-002 Condition: Deficiencies Noted in Cash Disbursements During the review of sixty (60) Cash Disbursement items selected for audit, the following deficiencies were noted: 12 Checks selected for audit were not fully supported with receipts and invoices to support the disbursement 3 Credit card payments were not fully supported with purchase authorization and invoices 1 Cashiers check lacked support Assistance Listing #: 14.867 Questioned Costs: Undetermined Cause: The Authority’s deficiency in the area of cash disbursements is a lack of internal controls or the invoice approval process. Effect: The Authority has not been in complete compliance with HUD regulations and internal control requirements to support invoices. Criteria: 24 CFR requirements for Cash Disbursements Documentation Recommendation: We recommend a review of the cash disbursement documentation process in order to ensure that each disbursement is fully documented prior to check issuance, and we further recommend an update of internal control policies and regular quality control reviews over cash disbursements to ensure compliance with HUD regulations. Reply: Management agrees with the audit finding and the auditor’s recommendation. We will implement procedures and changes to ensure that this finding will be cleared by the subsequent fiscal year audit.