Finding 620300 (2022-002)

Reference Number: 2022-002 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Public Housing Capital Fund Assistance Listing Number: 14.872 Award Period: 2018, 2019, 2020, 2021 Type of Finding: Significant Deficiency in Internal Control over Compliance Other Matters Criteria: Cash management and disbursement Capital Funds: To initiate disbursement of Capital Funds, the Authority must submit a voucher for payment through LOCCS. The Authority may only submit a voucher to disburse funds for bills due and payable for work that has already been performed or for items received. Once funds are disbursed, i.e., transferred from LOCCS to the Authority?s bank account, the Authority must pay the applicable bill(s) within 3 business days after the deposit of the funds into the Authority?s bank account. The Authority cannot expend nonfederal funds first to pay the applicable bills and then use Capital Funds to reimburse themselves. Condition: There were bill(s) identified in sample of the Capital Funds first paid through nonfederal funds and reimbursed at a later date by use of Capital Funds. We noted bill(s) dated and paid up to and at times exceeding a year before the Capital Funds reimbursed date. Questioned Costs: Not applicable. Effect: These deficiencies result in the possibility that errors or irregularities can exist and not be detected by the Housing Authority?s internal control. Recommendation: The Housing Authority should timely submit a voucher to disburse funds for bills due and payable for work that has already been performed or for items received.