Finding Text
2003-001 - Significant Deficiency in Internal Control - Public and Indian Housing Program - ALN#14.850. Criteria or Specific Requirement: The PHA is required to maintain adequate controls over disbursements. Condition: During the year, the PHA discovered an employee had been making unauthorized ACH payments. Cause: ACH charges were not being reviewed on a monthly basis. Effect: Unauthorized ACH payments were made during the year. Questioned Costs: $ 7,209. Repeat Finding: Not a repeat finding. Recommendation: All ACH payments should be subject to the PHA's internal control documentation and approval process. The PHA should review its monthly bank statements and document that all ACH payments are adequately supported and approved. Response: The employee involved has been terminated and charges have been filed. The PHA will ensure that all ACH payments are adequately documented and approved.