Finding Text
Criteria: Per Financial Operations and Accounting Procedures for Insured Handbook 4370.20, Chapter 2. Financial Operations and Accounting 2-12 Cash Management Controls-B Disbursement Controls are the following disbursement controls:
1. A request for a check must have supporting documentation (i.e., invoice itemizing amount requested with an authorized signature) in order for approval to be obtained top to make the disbursements.
2. Checks must be approved by an individual; authorized to approve checks.
3. The authorized check signer should review supporting documentation before signing checks.
4. Supporting vouchers shall be marked canceled to prevent resubmission.
5. A monthly reconciliation shall be performed to ensure that all outstanding checks disbursed are accounted for (i.e., cashed, outstanding, or void).
6. Invoices should be marked “paid,” and the check number and date should be posted to the invoice. Supporting vouchers shall also be marked “paid” to prevent resubmission.
Condition: During our testing of cash disbursements, we noted the following:
1. Vendor’s invoice is unavailable for examination purposes. 24 (twenty-four) exceptions were noted
2. No approval note or accounts number & account description noted on vendor’s invoices per all vendors’ invoices. 8 (eight) exceptions were noted.
3. Cancelled check was unavailable for examination purposes. 40 (forty) exceptions were noted.
Effect: The Management Agent did not follow HUD Disbursement Control procedures.