Finding 598958 (2022-002)

U.S DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Finding 2022-002: Segregation of Duties Allowable Activities / Allowable Costs Housing Voucher Cluster #14.871 Significant Deficiency Financial Statement Finding 2022-001 applies to this federal program. Statement of Condition The Executive Director was responsible for most of the accounting functions including the procurement and authorization of expenditures. Criteria There should be proper segregation of duties so that no single individual has access to authorization, recording, custody, or reconciling of assets. This is to ensure that unintentional or intentional errors are detected in a timely fashion. Cause The Authority relied on the former Executive Director until departure without adequate oversight and review. Effect or Potential Effect Executive Director had access to expend resources for unallowable expenses. Recommendation We recommend the Authority adhere to policies involving the segregation of duties to allow for effective authorization and monitoring procedures. Management?s Response Management agrees with finding, see Corrective Action Plan for plan of action.