Finding 965924 (2023-002)

Federal Agency: U.S. Department of Housing and Urban Development Program: Emergency Solutions Grant & Emergency Solutions Grant – CV (CFDA No. 14.231) Finding Type: Material Weakness Questioned Costs: None Material Weakness: As discussed at Finding 2023-001, the Coalition's internal control procedure, which requires both the executive director and an additional authorized signer to approve invoices, has not been implemented. This step is essential for ensuring that expenses align with grant requirements, thereby offering a safeguard through the implementation of the Coalition's internal controls. The existing procedures mandate supervisory approval of documentation before the authorization of expenses for payment, but documentation was apparently not filed or notated correctly. This situation provides the opportunity for expenditures that do not comply with grant stipulations to occur without being detected promptly. It is recommended that the Coalition implement and follow controls adopted, including requiring the Executive Director along with one additional authorized signer to review all supporting documentation related to each expense and upon review, notate their approval with signature as audit evidence. The Coalition will implement the correction action plan discussed at Finding 2023-001 over all federal and state programs.