Finding Text
Item 2023-001 Failure to Provide Support for Cash Disbursement
Condition: During cash disbursement testing the Project was unable to provide
support for one out of 40 selections. The Project was unable to
substantiate the bookkeeping charge of $10,000 or $833 per month.
The HUD approved budget states that the project can charge $9,600
per year or $800 per month. Therefore, the Project charged an
additional $400 and was unable to substantiate the additional fee.
Criteria: Per HUD regulations all disbursements from the regular operating
account must be supported by approved invoices, bills, or other
supporting documentation.
Cause: The Project charged $400 more in bookkeeping fees than the HUD
approved budget amount for bookkeeping fees of $9,600.
Effect: The Project not in compliance with HUD regulations for cash
disbursements.
Recommendation: We recommend that management ensures that all cash disbursements
can be supported by approved invoices, bills or other supporting
documentation.
Auditee Response and Action Plan:
Management will ensure that all expenditures can be supported by
approved invoices, bills or other supporting documentation.