Finding 577206 (2022-002)

Federal Agency: U.S. Department of Housing and Urban Development Program: Emergency Solutions Grant & Emergency Solutions Grant – CV (CFDA No. 14.231) Finding Type: Material Weakness Questioned Costs: None Condition: Documentation of proper approval on 14 selected major program expense transactions could not be located. Criteria: The Coalition’s internal controls require an authorized signature of approval by the Operations Director for all payment requests. Cause: Procedures are in place for supervisory approval of documentation before expenses are authorized for payment, but documentation was apparently not filed or notated correctly. Effect: The situation provides opportunity for unauthorized transactions to be made and not detected in a timely manner. Recommendation: Management should review all supporting documentation for every disbursement and, if approved, notate their approval with signature as audit evidence. Views of Responsible Officials and Planned Corrective Action: All check requests will be reviewed and signed by the Executive Director and initialed by one authorized check signer. Invoices will be reviewed and initialed by the Executive Director and initialed by one authorized check signer. Checks will be signed by two authorized individuals. Checks and invoices will be reviewed for completion prior to copying and distributing.