Finding 588685 (2022-001)

Significant Deficiency Repeat Finding
Requirement
A
Questioned Costs
-
Year
2022
Accepted
2023-09-28

AI Summary

  • Core Issue: Cash disbursements lacked proper documentation, with 6 checks missing receipts and invoices.
  • Impacted Requirements: Non-compliance with HUD regulations and internal control standards for cash disbursement documentation.
  • Recommended Follow-up: Review and enhance the cash disbursement process and internal controls to ensure all disbursements are fully documented before issuing checks.

Finding Text

2022-1 Condition: Deficiencies Noted in Cash Disbursements During the review of Cash Disbursement, the following deficiencies were noted: 6 checks selected for audit were not fully supported with receipts and invoices to support the disbursement. Assistance Listing No.: 14.182 Questioned Costs: None Cause: The Authority?s deficiency in the area of cash disbursements is a lack of internal controls over invoice control and approval. Effect: The Authority has not been in complete compliance with HUD regulations and internal control requirements to support invoices. Criteria: 24 CFR requirements for Cash Disbursements Documentation Recommendation: We recommend a review of the cash disbursement documentation process in order to ensure that each disbursement is fully documented prior to check issuance, and we further recommend update of internal control policies and regular quality control reviews over cash disbursements to ensure compliance with HUD regulations. Reply: We concur with the Auditor?s recommendations. We will review the cash disbursement documentation process in order to ensure that each disbursement is fully documented. We will update internal control policies to ensure complete compliance with HUD regulations. Management has implemented procedures in order to clear this finding in FY 2023.

Categories

HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 12243 2022-001
    Significant Deficiency Repeat
  • 12244 2022-002
    Significant Deficiency
  • 588686 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.182 Section 8 New Construction and Substantial Rehabilitation $650,633
14.850 Public and Indian Housing $440,661
10.427 Rural Rental Assistance Payments $102,786