Finding 966563 (2023-003)

2023‐003 Written Procedures of Internal Control over Compliance (Significant Deficiency) Federal Agency: Department of Housing and Urban Development Program Name: Section 811 Supportive Housing for Person with Disabilities Assistance Listing Number: 14.181 HUD Project Number: 102‐HD018 Award period: Year ended June 30, 2023 Criteria: According to 2 CFR 200, Subparts D and E an Organization is required to maintain written policies for the internal control over compliance of federal awards. Condition: The Organization does not maintain these written policies for the internal control over compliance of federal awards. Cause: The Organization’s policies and procedures were not designed to include written policies for the internal control over compliance of federal awards. Effect: The Organization's lack of written policies for the internal control over compliance of federal awards increases the risk of non compliance of its major federal programs. Recommendation: We recommend that the Organization develop written policies for the internal control over compliance of federal awards. Repeat Finding: Yes. Prior year reference number 2022-003. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and plans to develop proper written policies for the internal control over compliance of federal awards.