Housing Authority of Williamsburg

CFDA Title and Number: Public and Indian Housing ? 14.850 Name of Federal Agency: Department of Housing and Urban Development Internal Control Over Compliance: Allowable Costs / Cost Principles Criteria: OMB Circular A-87 contains guidance regarding allowable expenditures from federal funds. Circular A-87 provides that one of the factors affecting allowability of a cost is authorization. This authorization is indicated by inclusion in an approved budget. Condition: Salary payments to the Executive Director exceeded the budgeted amount by $12,975. Cause: The Authority had no, or ineffective, internal controls as they relate to the review of actual versus budgeted expenditures. Effect or Potential Effect: Unallowed and/or questioned costs could be incurred. Questioned costs: $12,975 Context: The Executive Director was terminated as a result of this condition. Repeat of Prior Year Finding: No Recommendation: (1) The Authority should contact its surety and bonding carrier and alert them the possibility of a claim. (2) The Authority should implement internal controls that provide for the review of budgeted versus actual financial statements by management and the board on a monthly basis. PHA?s Response: We will do as recommended. Corrective Action Plan: The Housing of Williamsburg will begin reviewing budgeted versus actual financial statements on a monthly basis. Responsible Person: Executive Director Mary Thornton