Finding 596657 (2022-005)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-09-05
Audit: 19726
Organization: Municipality of Salinas (PR)

AI Summary

  • Core Issue: The Program lacks adequate accounting records, failing to summarize financial transactions related to assets, liabilities, revenues, and expenditures.
  • Impacted Requirements: Noncompliance with 24 CFR 982.158 (a) and 2 CFR 200.302 (a) regarding record-keeping and financial management systems.
  • Recommended Follow-Up: Establish stronger internal controls to maintain complete and accurate accounting records for effective audits and compliance.

Finding Text

FINDING NUMBER 2022-005 FEDERAL PROGRAM SECTION 8 HOUSING CHOICE VOUCHERS (CFDA 14.871) U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT REQUIREMENT COMPLIANCE AND INTERNAL CONTROL NONCOMPLIANCE REPORTING CONDITION During my reporting test, We noted that the Program did not maintain adequate and complete accounting records and did not summarize the information of all the financial transactions related to assets, liabilities, revenues, and expenditures of the Program in formal accounting records. CRITERIA Code of Federal Regulations 24, Section 982.158 (a) states that the PHA must maintain complete and accurate accounts and other records for the program in accordance with HUD requirements, in a manner that permits a speedy and effective audit. The records must be in the form required by HUD, including requirements governing computerized or electronic forms of record-keeping. Also, 2 CFR Section 200.302 (a) of the Uniform Guidance, states that the non-Federal entity?s financial management systems, including records documenting compliance with Federal statutes, regulations, and the terms and conditions of the Federal award, must be sufficient to permit the preparation of reports required by general and program-specific terms and conditions; and the tracing of funds to a level of expenditures adequate to establish that such funds have been used according to the Federal statutes, regulations, and the terms and conditions of the Federal award. CAUSE The Program failed to establish adequate internal controls to ensure that adequate and complete set of accounting records are maintain. EFFECT The Program?s accounting records did not provide updated and complete financial information related to the financial position and the result of operations.

Categories

HUD Housing Programs Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 20215 2022-005
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $6.23M
21.027 Coronavirus State and Local Fiscal Recovery Funds $925,797
97.030 Community Disaster Loans $621,174
21.019 Coronavirus Relief Fund $336,860
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $192,231
93.575 Child Care and Development Block Grant $80,350
20.505 Metropolitan Transportation Planning and State and Non-Metropolitan Planning and Research $48,000
93.569 Community Services Block Grant $25,971
14.871 Section 8 Housing Choice Vouchers $6,434
14.231 Emergency Solutions Grant Program $3,028