Finding Text
Finding 2023-001 Allowability of Costs –Ineligible Costs
Assistance Listing Number 14.850, Noncompliance - Low Rent Public Housing
Criteria-
Title 2, Part 200, Uniform Administrative Requirements, states that the entity should "establish and
maintain effective internal control over the Federal award and provides reasonable assurance that the
nonfederal entity is managing the Federal award in compliance with Federal statutes." This requirement
also specifies that type of payments allowed and the controls over those payments.
Condition-
During audit fieldwork, we identified credit card purchases that were for the personal benefit of all
employees. The Housing Commission purchased gift cards totaling $1,030 for all employees and gifted to
employees as a year-end bonus. The Housing Commission has internal controls in place which require
signatures of approval by the Executive Director and a Board Commissioner for all purchases. The purchase
was approved by both required parties.
Questioned Cost-
$1,030
Effect-
Non-compliance with the federal allowability requirement. Inability to effectively approve transactions.
Cause-
Failure to execute controls over the federal allowability compliance requirement
Recommendation-
We recommend the Commission implement strengthened controls over the approval of credit cards
purchases.