Universal Housing Development CorporationNon-Profit

Statement of Condition: Lack of oversight in internal control over the check disbursements in the Paris Section 8 program. Criteria: Universal Housing Development Corporation's policy states that dual signatures are required on all checks. Effect: Checks disbursed from the Paris Section 8 program did not have dual signatures and six checks cleared the bank with no signature. Recommendation: Management should put procedures in place to verify that the process over the Paris Section 8 program disbursements is being performed monthly and they adhere to Universal Housing Development Corporation's policies and procedures. Response: Universal Housing Development Corporation will put procedures in place to ensure that all policies are being met through the Paris Section 8 program and procedures.

Statement of Condition: Lack of oversight in internal control over sub accounts within the Paris Section 8 program due to year end adjusting journal entries not being recorded. Criteria: The management agent over the Paris Section 8 program's trial balance should reconcile with Universal Housing Development Corporation's trial balance. Effect: The management agent over the Paris Section 8 program did not record the year end adjusting entries therefore the sub accounts on their books did not reconcile with Universal Development Corporation's trial balance at year end. Recommendation: Management should implement a verification and communication process with the management agent over the Paris Section 8 program to ensure that the books reconcile with their trial balance on a monthly and yearly basis. Response: Universal Housing Development Corporation will put procedures in place on a monthly and annual basis to ensure that the Paris Section 8 program management agent's trial balance reconciles with the corporation's trial balance.

Statement of Condition: Lack of oversight in internal control over the Paris Section 8 program's client deposit account balance. Criteria: Universal Housing Development Corporation's is to ensure that the dollar amount reflected in the bank and liability account for client deposits agree and have supporting documentation. Effect: Although the client deposit bank account was reconciled on a monthly basis, it did not agree with the liability account or the supporting documentation. Both accounts had a higher balance than was supported by the file documentation. Recommendation: Management should implement monthly and yearly procedures to ensure that the client deposit bank account and liability accounts are properly reflecting the correct balance and agrees with supporting documentation. Response: Universal Housing Development Corporation will put monthly and yearly procedures in place to ensure that the client deposit bank account and liability account reflects the proper amount and agrees with the supporting documentation.