Finding Text
U.S. Department of Housing and Urban Development ‐ CFDA #14.872
Capital Fund Program
Applicable Federal Award Number and Year – Capital Fund Program ‐ 2021
Special Tests and Provisions – Capital Funds for Operating Costs
Significant Deficiency in Internal Control over Compliance
Criteria – A complete system of internal control contemplates for the development of a process to track and monitor the obligation and expenditure of program funds to ensure they are within program guidelines and requirements.
Condition – During our testing it was determined there was no consistent, documented process to ensure the timely obligation and expenditure of program funds to remain in compliance.
Questioned Costs – None Reported.
Context/Sampling – Not Applicable.
Effect – Failure to implement and maintain a proper control process could result in failure to meet the obligation and expenditure requirements of the program, resulting in the loss of funding.
Cause – Due to a lack of oversight, the Authority did not retain documentation that they had monitored the various program requirements to ensure compliance.
Repeat Finding from Prior Year – Yes.
Recommendation – The Authority should develop a process and maintain documentation showing they are consistently monitoring the obligation and expenditure requirements of the program.
Views of Responsible Officials – Management agrees with the finding.