Core Issue: Invoices for accounts payables were not authorized by management before payment.
Impacted Requirements: Proper authorization is needed to maintain a clear document trail for disbursements.
Recommended Follow-Up: Ensure all invoices are signed or initialed for verification and authorization.
Finding Text
2020-013 Internal Controls Were Not Followed
Criteria:
Invoices for accounts payables should be properly authorized for payment prior to entry into the computer software.
Condition:
Invoices for accounts payables were not properly authorized by Fayetteville Housing Authority management.
Questioned Costs:
Unknown.
Effect:
No clear document trail on disbursements.
Cause:
The Fayetteville Housing Authority did not place emphasis on ensuring that the invoices paid were being reviewed and authorized.
Recommendation:
We recommend that the Fayetteville Housing Authority ensure that all invoices are adequately initialed or signed to ensure that they are correct and authorized.
Categories
HUD Housing ProgramsInternal Control / Segregation of Duties