Finding Text
Finding 2022-001 Material Weakness Criteria: Management should have a system in place to reduce the likelihood of errors in financial reporting and to ensure the safeguarding of assets. Condition: Controls over the vendor payment process was not properly followed. Cause: The Organization experienced high turnover in the finance department resulting in a failure to safeguard program assets. Effect: The result of the vendor process being circumvented allowed a malicious actor to gain electronic access to the checking account for the Section 8 Housing Choice Vouchers program and implement $56,944 of unreimbursed fraudulent disbursements from the account. Questioned Costs: $56,944 Recommendation: The Organization should monitor the internal controls over the vendor payment process and implement additional procedures for authentication. Views of Responsible Officials and Corrective Action Plan: Management concurs with this finding and will adhere to the Corrective Action Plan in this audit report.