Finding Text
2022-001 Significant Deficiency in Internal Control Department of Housing and Urban Development ""See Schedule of Findings and Questioned Costs for chart/table"" Criteria or specific requirement: Program income: The Authority?s system of internal control should provide reasonable assurance that program income is correctly earned and recorded in accordance with the program requirements. Condition: One month of HOME transactions was erroneously posted in Integrated Disbursement and Information System (IDIS) as program income. The Housing Trust Fund (HTF) program income transactions were posted in IDIS, however, there was no timely verification process in place for assuring the program income was correctly recorded in IDIS. Cause: The Authority is lacking a timely and accurate reconciliation process between the IDIS and the bank statements to ensure the accurate recognition and reporting of program income. Effect or Potential Effect: Program income may be incorrectly reported to the federal government in IDIS. Questioned Costs: None. Context: One month of HOME transactions totaling $67,304 was erroneously reported in IDIS as program income. The transactions were receipts other than program income, however reported in IDIS as program income. The transactions were appropriately accounted for and reconciled in the Authority?s general ledger. Additionally, the Housing Trust Fund program income reconciliation process between IDIS and the bank statements was not performed timely. Identification as a Repeat Finding: This is a repeat finding for HOME of prior year finding 2021-001. Recommendation: The Authority should further refine the reconciliation process between IDIS, the general ledger and bank statements for all funding sources of its federal programs. Views of Responsible Officials: Please refer to the Authority?s corrective action plan.