Finding 48747 (2022-006)

Material Weakness
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2023-08-09

AI Summary

  • Issue: Disbursements to the utility company were not made within the required seven business days in three out of eighteen cases.
  • Requirements Impacted: The contract stipulates that funds must be reimbursed within seven business days.
  • Recommended Follow-Up: UESF management plans to review and strengthen internal control procedures to ensure compliance.

Finding Text

2022- 006 Condition: In three of the eighteen items selected for testing disbursements to the related utility company did not occur in the required time frame. Criteria: The contract requires that draw down of funds be reimbursed within seven business days. Cause: The individual responsible for this requirement did not complete the procedure in time. Effect: The criteria in the contract has not met. View of Responsible Officials and Planned Corrective Action: UESF?s management agrees with the finding and will review and enforce internal control procedures.

Corrective Action Plan

Planned Corrective Action - UESF hired a new Director of Finance for more accurate nd timely reporting. UESF's management plans to acquire additional staff to assist with accounting. Training of Fiscal and operational staff regarding actual time charged will begin in July 2023. All work is reviewed by the Director of Finance and monitored by the Executive Director. Person Responsible - UESF's Executive Director John Rowe. Timing The new Director of Finance was hired in April 2023. Regarding the additional staff the hiring process has begun with proposed additional staff projected to be on board in September 2023. The process to improve accuracy and timeliness will be completed in December 2023. The Executive Director will monitor the process, preparing formal quarterly documentation beginning July 2023.

Categories

Cash Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 48746 2022-005
    Material Weakness
  • 625188 2022-005
    Material Weakness
  • 625189 2022-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.023 Emergency Rental Assistance Program $10.68M
14.218 Community Development Block Grants/entitlement Grants $722,811
14.231 Emergency Solutions Grant Program $442,944
93.569 Community Services Block Grant $382,780
14.267 Continuum of Care Program $149,562
14.257 Stabilizing Philadelphia's Housing Challenged Families $76,420
17.258 Wia Adult Program $73,924
64.033 Va Supportive Services for Veteran Families Program $66,826
97.024 Emergency Food and Shelter National Board Program $37,998