Finding 634968 (2022-002)

Finding 2022-002: Operating Subsidy Public Housing, 14.850 Material Weakness ?Special Tests and Provisions Criteria: The Agency is responsible for establishing an effective internal control process to ensure the Agency complies with the requirements governing the Public Housing program. Condition: During our audit, we noted the responsibility for the completion of UEL Formula, Form 52722 along with maintaining the supporting documentation was solely the responsibility of one individual without any type of review or oversight controls. Cause: The Agency had not adequately reviewed its internal control structure regarding the maintenance and reporting of utility expense and established effective controls to prevent errors or fraud. Effect or Potential Effect: The control deficiencies are deficiencies that result in more than a reasonable possibility that material noncompliance with program requirements could occur and not be prevented or detected Recommendation: The Agency should review the deficiency and determine what controls should be implemented to ensure the accurate information is reported and supported for utility consumption and expenses for the purposes of reporting them on UEL Formula, From 52722. View of the Responsible Officials of the Auditee: The auditee's management agrees with the.