Core Issue: The PHA's Board is not approving ACH payments, leading to a material weakness in internal controls.
Impacted Requirements: Board approval of ACH expenses is necessary for proper disbursement controls.
Recommended Follow-Up: Implement a system to number ACH payments and attach supporting documents for Board approval.
Finding Text
Material weakness in internal control - ACH payments. Criteria or Specific Requirement: Board approval of ACH expenses should be obtained for adequate internal control over disbursements. Condition: The PHA's Board is not approving ACH payments. Cause: Unknown. Effect: ACH payments are not being approved by the PHA's Board. Questioned Costs: None. Repeat Finding: Not a repeat finding. Recommendation: The PHA should number the ACH payments on its bank statements and attach supporting documentation with the corresponding number. The numbered supporting documentation should be attached to a copy of the bank statement and approved by a Board member authorized to cosign checks. Response: The PHA will implement this internal control procedure.
Corrective Action Plan
Corrective Action Plan - ACH payments not approved by the Board. Contact person - Executive Director. Corrective action planned - The PHA will implement the control procedure of attaching ACH supporting documentation to a copy of the bank statement and obtaining approval from a Board member authorized to sign checks. Anticipated completion date - Within the next fiscal year.
Categories
HUD Housing ProgramsMaterial WeaknessInternal Control / Segregation of Duties