Finding Text
Criteria: 2 CFR 200.303 includes requirements related to internal controls for federal award programs, including that the Association must, among other things, “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. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)”.
Condition and Context: We noted a formal review and approval process did not exist for monthly payment vouchers submitted to The Department of Housing and Urban Development (HUD) under federal awards IN0193L5H022105 and IN0193L5H022206. However, no noncompliance with the period of performance for either award was noted in items selected for testing. An appropriately designed formal review and approval process was implemented and operating effectively for the Association's other awards under this assistance listing number.
Cause and Effect: The deficiency noted above could result in inaccurate claims being submitted under federal awards IN0193L5H022105 and IN0193L5H022206.
Recommendation: We recommend the Association implement a formal review and approval process over monthly payment vouchers submitted to HUD for federal awards IN0193L5H022105 and IN0193L5H022206 similar to the processes and procedures implemented for the other awards under this assistance listing number.
Views of Responsible Officials and Planned Corrective Actions: The Association agrees with the finding and plans to implement their corrective action during October 2024.