Finding Text
Finding reference number: #2022-001 CFDA title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, CFDA No. 14.181 (Section 811 loan identification number 083-HD073- NPWPD, year 2005). Auditor non-compliance code: Z-Other Finding resolution status: Unresolved Universe population size: 225 invoices Sample size information: 23 invoices Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat finding: Yes Statement of condition #2022-001: During the year ended March 31, 2022, 6 of the 23 cash disbursements selected for testing were not supported by approved invoices, bills, or other supporting documentation. Criteria: In accordance with HUD Handbook 4370.2, Section 2-6, all disbursements from the regular operating account must be supported by approved invoices, bills, or other supporting documentation. Effect or potential effect: The Property is not in compliance with the terms of the PRAC or HUD Handbook 4370.2. Due to inadequate record keeping procedures, the Agent may have paid incorrect amounts for operating expenses. Cause: The Agent did not maintain the required supporting documentation for all cash disbursements in accordance with HUD Handbook 4370.2 due to verbal or informal agreements with vendors. Recommendation: The Agent should ensure that all cash disbursements are supported by approved invoices, bills, or other supporting documentation. The Agent should require that vendors provide written documentation of services or goods provided prior to making payments to the vendors. Completion date: March 31, 2023 Management's response: The Agent concurs with the recommendation. The Agent will require all vendors to submit invoices or other support for work performed prior to making payments to vendors, and all documentation will be retained.