Core Issue: The System lacks controls to ensure written consent from HUD before new debt or lease arrangements.
Impacted Requirements: Compliance with the Uniform Guidance regarding internal controls over material compliance requirements.
Recommended Follow-Up: Management should implement effective controls to secure written consent from HUD prior to any new debt or lease agreements.
Finding Text
Criteria: The Uniform Guidance requires appropriate internal controls over compliance for each direct and material compliance requirement. Proper controls should be established to ensure written consent from HUD prior to incurring new debt or lease arrangements is obtained. Condition: The System did not have a control process established to ensure written consent was obtained. Effect: The System did not maintain written consent from HUD prior to obtaining new debt or lease arrangements. Questioned Costs: None. Cause: Lack of effectively designed and implemented controls around obtaining written consent from HUD regarding new debt or lease arrangements. Recommendation: Management should establish effective controls over compliance to ensure the written consent is obtained prior to incurring new debt or lease arrangements. Management Response: See corrective action plan.
Categories
HUD Housing ProgramsInternal Control / Segregation of Duties