Finding 554631 (2024-003)

Award Period: April 1, 2023, to March 31, 2024 Compliance Requirement Affected: Cash Management Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: According to §200.303 Internal Controls of 2 CFR Part 200, the non‐Federal entity must 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. Condition: HUD Housing Assistance Payment forms lacked proper review by a management agent or an acting management agent. Questioned costs: None noted. Context: A nonstatistical sample of 3 out of 12 HUD Housing Assistance Payment forms were selected for testing for the Section 8 Housing Assistance Payments Program. The lack of proper review of HUD Housing Assistance Payment forms was identified during the auditor's testing of cash management. Cause: Lack of a management agent or acting management agent in place at the time of preparing HUD Housing Assistance Payment forms. Effect: Noncompliance results in the potential for mathematical errors in accuracy of calculation of request for payment on the HUD Housing Assistance Payment forms.