Finding 5741 (2023-001)

Finding Reference Number: 2023-01 Federal Programs: Section 202 Direct Loan (CFDA 14.138) Type of Finding: Federal Award Finding Finding Resolution Status: Unresolved Criteria: Proper documentation should be maintained for all transactions. Statement of Condition: Credit card payments totaling $31,065 are not substantiated with proper receipts and credit card balances were not reconciled. Cause: Property management was paying new balances on credit card statements which included past due amounts. Accounting was not receiving details of payments and therefore potentially coding expenses to incorrect accounts. Effect or Potential Effect: Noncompliance and potential payment of duplicate or unauthorized expenses. Auditor Noncompliance Code: Cash management Questioned Costs: $31,065 Recommendation: Management should reconcile accounts and obtain source documents and receipts. Completion Date: 10/31/2023 Reporting Views of Responsible Officials: Management agrees with the finding and will reevaluate internal controls to assure proper documentation and reporting in the future.