Finding Text
Compliance Requirement: Activities Allowed or Unallowed and Special Tests and Provisions Criteria: The organizations’ disbursements must be supported by approved bills, invoices, or other supporting documentation. Funds should also be reasonable and necessary for the operation and maintenance of the project. Condition and Context: During our audit procedures, it was noted that management was unable to provide sufficient documentation of certain expenses. Specifically, 17 of 40 disbursements did not have any supporting documentation to support their purpose, approval, or appropriateness. Questioned Costs: $7,287.80 Cause: The organization does not policies in place for record retention, and there is no evidence of oversight from the Board of Directors. Effect: The organization is not in full compliance with the requirements with its regulatory agreement with HUD or the Uniform Guidance. Recommendation: We recommend that all supporting documentation for all expenditures be retained by the organization and that the organization involve the Board of Directors to approve disbursements for the organization. We also recommend that the organization stop using petty cash, and not use debit or credit cards in the future. Management Response: See Corrective Action Plan.