Finding Text
Finding SA2019-008: Internal Controls
AL number: 14.850 and 14.871
AL Title: Public and Indian Housing, and Housing Voucher Cluster - Section 8 Housing Choice Vouchers
Name of Federal Agency: Department of Housing and Urban Development
Federal Award Identification number and year: CA010 (2019)
Criteria: Public Housing Authorities (PHA) are required to establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award as stated in CFR 200.303.
Condition: During our audit, we were unable to obtain an understanding of the internal controls over the federal awards of the Authority, because current Authority staff could not respond to our inquiries about processes and procedures.
Cause: We understand that the staff overseeing the federal awards during fiscal year 2019 are no longer with the Authority, and therefore, the staff overseeing the federal awards subsequent to the fiscal year were unable to provide any information regarding the internal controls of the Authority.
Effect: The Housing Authority is not in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award as stated in CFR 200.303.
Recommendation: The Housing Authority must develop procedures to ensure that there is an internal control environment in compliance with the federal requirements.
View of Responsible Officials and Planned Corrective Actions: Please see Corrective Action Plan separately prepared by the Housing Authority.