Finding 592314 (2022-001)

-
Requirement
N
Questioned Costs
$1
Year
2022
Accepted
2023-04-23
Audit: 19237
Organization: Cleveland Supported Housing INC (TX)

AI Summary

  • Core Issue: Duplicate invoices were submitted for withdrawals from the replacement reserve, leading to improper fund usage.
  • Impacted Requirements: Withdrawals must be based on accurately recorded transactions with proper support to ensure compliance.
  • Recommended Follow-Up: Management should revise the withdrawal process to prevent duplication and reimburse any overdrawn funds promptly.

Finding Text

Findings reference number: 2022-01 Title and AL Number of Federal Program: Supportive Housing for Persons with Disabilities, AL 14.181 Type of finding: Compliance Resolution Status: In process Population size: N/A Sample size: N/A Repeat finding: No Criteria: Withdrawals from the replacement reserve should be based on transactions recorded in the general ledger that have proper support. Condition: Some invoices were duplicated on requests for withdrawal from the replacement reserve. Cause: Management oversight. Effect: Funds were withdrawn for expenditures which had been included in other requests for withdrawal. Noncompliance code: A. Questioned costs: $2,598. Reporting views of officials: Management will investigate the matter. Contract Number: 114HD048 Context: The additional funds withdrawn may have to be refunded. Recommendation: Management should review its process for requesting withdrawals from the replacement reserve and ensure there is no duplication of expenditures claimed. If there were duplications, management should reimburse the reserve for replacement for the overdrawn funds as soon as possible. Auditors' summary of auditee's comments: They are in agreement. Completion date: December 31, 2023. Response: Management will follow the recommendation.

Categories

Questioned Costs Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $2,040