Finding Text
2023-008 Approval of Invoices
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Name: Section 8 Housing Choice Vouchers
Assistance Listing Number: 14.871
Federal Award Identification Number and Year: Passthrough Funds
Pass-Through Agency: BCHA and WHEDA
Pass-Through Number(s): BCHA – WI 186; WHEDA – WI 901
Award Period: January 1, 2023 – December 31, 2023
Compliance Requirement: Allowable Activities, Allowable Costs
Type of Finding: Material Weakness in Internal Control over Compliance, Other Matter
Criteria or specific requirement: The Organization did not follow their internal policies and retain supporting documentation related to the approval of all ACH and check transactions.
Condition: During our testing, we noted that the Organization did not have supporting documentation to support approval of eight cash disbursements of the forty disbursements before the payment was made.
Questioned costs: None
Context: From a sample of 40 cash disbursements selected for testing, seven ACH's and one check did not have the supporting documentation to prove the disbursements were approved prior to payment being made.
Cause: The Organization had turnover in the finance department during 2023 and either supporting documentation for the approval was misplaced or not retained for eight cash disbursements.
Effect: The effect of not having a documented approval is noncompliance with Uniform Guidance.
Repeat Finding: No
Recommendation: We recommend that Management review their current policies and procedures to ensure there is an appropriate review and approval process in place and the finance department retains this supporting documentation (either paper approval or electronic approval).
Views of responsible officials: There is no disagreement with the audit finding. Refer to the Organization’s Corrective Action Plan for more information.