Finding Text
FINDING NUMBER 2022-005 FEDERAL PROGRAM SECTION 8 HOUSING CHOICE VOUCHERS (CFDA 14.871) U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT REQUIREMENT COMPLIANCE AND INTERNAL CONTROL NONCOMPLIANCE REPORTING CONDITION During my reporting test, We noted that the Program did not maintain adequate and complete accounting records and did not summarize the information of all the financial transactions related to assets, liabilities, revenues, and expenditures of the Program in formal accounting records. CRITERIA Code of Federal Regulations 24, Section 982.158 (a) states that the PHA must maintain complete and accurate accounts and other records for the program in accordance with HUD requirements, in a manner that permits a speedy and effective audit. The records must be in the form required by HUD, including requirements governing computerized or electronic forms of record-keeping. Also, 2 CFR Section 200.302 (a) of the Uniform Guidance, states that the non-Federal entity?s financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. CAUSE The Program failed to establish adequate internal controls to ensure that adequate and complete set of accounting records are maintain. EFFECT The Program?s accounting records did not provide updated and complete financial information related to the financial position and the result of operations.