Finding Text
Federal Program: U.S. Department of Housing and Urban Development AL #14.871 - Material Weakness. Criteria: The Authority is required to have procedures in place to ensure that federal awards are in accordance with 2 CFR Part 200. Appendix XI. 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal awards. Condition: The Authority was unable to provide one of the 40 selected tenant files for testing of compliance. As a result, we were unable to perform compliance testing to ensure the entity was in compliance for all compliance categories mentioned above. Questioned Costs: None. Context: We are unable to test one of the 40 selected tenant files. Effect: The Authority is not in compliance with Uniform Guidance requirements. Cause: The Authority suffered flooding, which resulted in tenant files becoming damaged and thrown out. Repeat Finding: Not a repeat finding. Recommendation: We recommend that management stores tenant files in a safe location, in storage that will protect it from flood, fire, or other damage. Views of Responsible Officials: Management recognizes the deficiency and has made modifications to the storage area for
tenant files to ensure safe storage protected from fire, flood, or other damage.