Finding Text
2022-1 Condition: Loss of Internal Controls over Credit Card In a sample of Three (3) months of Credit Card statements and reconciliations, the following deficiencies were noted: 1 Month (February 2022) had 30 unsupported transactions across 11 different credit cards for a total of $2,189.68. 2 Month (July 2022) had 11 unsupported transactions across 4 different credit cards for a total of $1,306.84. 3 Month (September 2022) had 36 unsupported transactions across 7 different credit cards for a total of $6,724.97. 1 CFR ? 200.303 states that (a) The PHA must establish and maintain effective internal controls over the federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. CFDA Number: 14.850 Questioned Costs: None Criteria: 2 CFR ? 200.303 Cause/Effect: The Authority?s deficiencies in its credit card reconciliations stem from a lack of certain controls concerning HUD requirements and procedures. The Authority has not been in complete compliance with HUD requirements. Recommendation: We recommend that the Authority review its internal control procedures over credit cards. We also recommend more standardization in monthly credit card reconciliations. Reply: We concur with this finding and the Auditor?s recommendation. We will review the internal control procedures over credit cards and will implement more standardization in monthly credit card reconciliations. Management will implement procedures to clear this finding in FY 2023.