Finding Text
Finding No. 2024-002: Cash Disbursements Classification (Material Weakness)
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Title: Community Development Block Grants/Entitlement Grants
Federal Assistance Listing Number: 14.218
Compliance Requirement: Allowable costs, Activities allowed or unallowed
Statement of condition
During the year ended June 30, 2024, the Organization did not properly classify certain expenditures between expense accounts.
Criteria
Management should review expenditures for accurate expense account classification to ensure proper financial and HUD reporting.
Cause
Review procedures were not sufficient to ensure expenditures were recorded in accurate expense accounts.
Effect
Inaccurate expenses classification could result in improper financial and HUD reporting.
Recommendation
Management should revisit and enhance its internal controls and procedures over period-end review to ensure proper classification of charges.
Identification of repeat finding
The finding is a repeat of Finding No. 2023-003.
Auditor non-compliance code
S - Internal control deficiencies
Questioned costs
None
Finding resolution status
In process