Finding Text
Condition: The Corporation made advances to a related party without documented authorization or approval. Criteria: Advances to related parties should be properly authorized, supported by documentation, and approved in accordance with the Corporation’s policies and applicable requirements. Cause: The Corporation does not have adequate internal controls over related-party transactions. Effect: The Corporation is no longer in compliance with its Project Rental Assistance Contract. Recommendation: The Corporation should establish and implement controls requiring documented review and approval of all related-party advances before funds are disbursed. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and will implement procedures to ensure all related-party advances are reviewed, documented, and approved before payment.