Finding Text
2023-001 U.S. Department of Housing and Urban Development
Federal Financial Assistance Listing 14.267
Continuum of Care Program
Program Income
Significant Deficiency in Internal Control over Compliance
Criteria: 2 CFR 200.303(a) establishes that the auditee must establish and maintain effective internal control over the federal award that provides assurance that the entity is managing the federal award in compliance with federal statutes, regulations, and conditions of the federal award.
Condition: There was not a documented review by a separate individual outside of the preparer of the program income calculations.
Cause: The Housing Authority had a review process in place over program income calculations. However, the review process was not documented.
Effect: Without a documented review and approval, there is a possibility for errors in the calculation of program income.
Questioned Costs: None reported
Context/Sampling: A nonstatistical sample of 13 participants out of 65 participants were selected for program income testing.
Repeat Finding from Prior Year: No
Recommendation: We recommend the Housing Authority to implement a documentation process around the review and approval of program income calculations.
Views of Responsible Officials: Management agrees with the finding.