Finding 394662 (2020-013)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2020
Accepted
2024-04-25

AI Summary

  • Core Issue: Invoices for accounts payables were not authorized by management before payment.
  • Impacted Requirements: Proper authorization is needed to maintain a clear document trail for disbursements.
  • Recommended Follow-Up: Ensure all invoices are signed or initialed for verification and authorization.

Finding Text

2020-013 Internal Controls Were Not Followed Criteria: Invoices for accounts payables should be properly authorized for payment prior to entry into the computer software. Condition: Invoices for accounts payables were not properly authorized by Fayetteville Housing Authority management. Questioned Costs: Unknown. Effect: No clear document trail on disbursements. Cause: The Fayetteville Housing Authority did not place emphasis on ensuring that the invoices paid were being reviewed and authorized. Recommendation: We recommend that the Fayetteville Housing Authority ensure that all invoices are adequately initialed or signed to ensure that they are correct and authorized.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Actions: Fayetteville Housing Authority management and staff will closely monitor and follow the agency separation of duties procedure and Procurement Policy requirements. All invoices will be reviewed and approved prior to entry into accounting software for payment only with all required documentation present. All invoices will be reviewed for proper approval and documentation prior to payment by staff member authorized to generate payment before payment is generated. Payment will not be generated without appropriate back up documentation present. Upper-management will review a minimum of 20% of all payments for documentation, approval, and procurement compliance for the previous month. Responsible Parties: Audra Butler, Interim Deputy Director and FHA Board of Commissioners Finance Committee. Timeline: Ongoing- Compliance reviews beginning January 2022.

Categories

HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 394650 2020-001
    Material Weakness
  • 394651 2020-002
    Material Weakness
  • 394652 2020-003
    Material Weakness
  • 394653 2020-004
    Material Weakness
  • 394654 2020-005
    Material Weakness
  • 394655 2020-006
    Material Weakness
  • 394656 2020-007
    Material Weakness
  • 394657 2020-008
    Material Weakness
  • 394658 2020-009
    Material Weakness
  • 394659 2020-010
    Material Weakness
  • 394660 2020-011
    Material Weakness
  • 394661 2020-012
    Material Weakness
  • 394663 2020-014
    Material Weakness
  • 394664 2020-015
    Material Weakness
  • 394665 2020-016
    Material Weakness
  • 394666 2020-017
    Material Weakness
  • 394667 2020-018
    Material Weakness
  • 971092 2020-001
    Material Weakness
  • 971093 2020-002
    Material Weakness
  • 971094 2020-003
    Material Weakness
  • 971095 2020-004
    Material Weakness
  • 971096 2020-005
    Material Weakness
  • 971097 2020-006
    Material Weakness
  • 971098 2020-007
    Material Weakness
  • 971099 2020-008
    Material Weakness
  • 971100 2020-009
    Material Weakness
  • 971101 2020-010
    Material Weakness
  • 971102 2020-011
    Material Weakness
  • 971103 2020-012
    Material Weakness
  • 971104 2020-013
    Material Weakness
  • 971105 2020-014
    Material Weakness
  • 971106 2020-015
    Material Weakness
  • 971107 2020-016
    Material Weakness
  • 971108 2020-017
    Material Weakness
  • 971109 2020-018
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.872 Public Housing Capital Fund $2.89M
14.850 Public and Indian Housing $81,392
14.871 Section 8 Housing Choice Vouchers $20,347