Finding Text
Finding SA2020-001: Internal Control
AL number: 14.850
AL Title: Public and Indian Housing
Name of Federal Agency: Department of Housing and Urban Development
Federal Award Identification number and year: CA010 (2020)
Criteria: Public Housing Authorities (PHA) are required to 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 as stated in CFR 200.303.
Condition: During our audit, we were unable to obtain an understanding of the internal controls over
the federal awards of the Authority, as current personnel could not respond to the processes and
procedures.
Cause: We understand that the staff overseeing the federal awards during fiscal year 2020 are no longer
with the Authority, and therefore, the staff overseeing the federal awards subsequent to the fiscal year
were unable to provide any information regarding the internal controls of the Authority.
Effect: The Housing Authority is not in compliance with Federal statutes, regulations, and the terms
and conditions of the Federal award as stated in CFR 200.303.
Identification as a repeat finding: Yes, since 2019.
Recommendation: The Housing Authority must develop procedures to ensure that there is an internal
control environment in compliance with the federal requirements.
Management Response: The City has assigned staff to specific duties to support the Authority’s
financial operations. Staff have implemented new processes that align with the City’s policies and
procedures, while also in accordance with HUD regulations and requirements, to improve the integrity
and accuracy of the Authority’s financial reporting and management of federal awards. The procedures
ensure separation of duties and levels of approval to handle and manage federal funds. Staff also
continue to attend trainings to understand Federal statutes and regulations.