Finding 61613 (2022-004)

Significant Deficiency
Requirement
B
Questioned Costs
-
Year
2022
Accepted
2023-03-23

AI Summary

  • Core Issue: An invoice for $1,436 was mistakenly submitted twice for reimbursement, violating HUD's approval requirements.
  • Impacted Requirements: All disbursements must be approved by HUD and used for their intended purpose, as per 24 CFR section 891.405.
  • Recommended Follow-Up: Management should enhance internal controls to prevent duplicate disbursement requests for replacement reserves.

Finding Text

2022 ? 004 Federal Agency: Department of Housing and Urban Development Federal Program Name: Supportive Housing for Persons with Disabilities Listing Number: 14.181 Award Period: 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: All disbursements from the reserve must be approved by HUD and made for the approved purpose (24 CFR section 891.405). Condition: Upon performing testing over replacement reserve disbursements, we noted that one invoice was included in two different disbursement requests to HUD. Questioned costs: $1,436 Context: One of the invoice tested of $1,436 was included in two different disbursement requests to HUD. Cause: Turnover of property manager at the property management company and weaknesses in internal controls over replacement reserve disbursement. Effect: Disbursements made out of the replacement reserve included an invoice of $1,436 that was already included in previous disbursement request and was reimbursed twice. Repeat Finding: No Recommendation: We recommend that management strengthen controls over review of replacement reserve disbursement requests. Views of Responsible Officials: There is no disagreement with the audit finding.

Categories

HUD Housing Programs Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 61607 2022-002
    Material Weakness Repeat
  • 61608 2022-003
    Material Weakness
  • 61609 2022-004
    Significant Deficiency
  • 61610 2022-005
    Significant Deficiency
  • 61611 2022-002
    Material Weakness Repeat
  • 61612 2022-003
    Material Weakness
  • 61614 2022-005
    Significant Deficiency
  • 638049 2022-002
    Material Weakness Repeat
  • 638050 2022-003
    Material Weakness
  • 638051 2022-004
    Significant Deficiency
  • 638052 2022-005
    Significant Deficiency
  • 638053 2022-002
    Material Weakness Repeat
  • 638054 2022-003
    Material Weakness
  • 638055 2022-004
    Significant Deficiency
  • 638056 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $125,784