UNITED STATES GENERAL ACCOUNTING OFFICE REGIONAL OFFICE Wr~ 4U, UtOCM U.S. CUTOMHOL)", 610 SUTH CANAL SETP 917 CHICAGOi ILLINOIS ati7 SEP 29 1971 Desaeorg. Yavoula J. Regfional Admilstrator, Regit V Department of Sowing ad Urban Development 360 111orth Mihianl A"** Chleago, llllsol8 60601 Dear llrs Vievoulla We hav made a revliw for the nettleat of accousts of the certifying officers of egiuoa Y, Department of baslg and Urban Dkvlepent, for the period of July 1, 1966, throuqh Jute 30, 1971. The reviow, completed In Auguit 1971, was made pursuant to the Budget and Aecoustiag Act, 1921 (31 U.s.C. 53) and the Accouting ad Auditing Act of 1950 (31 U.S.C. 67). Our review war directed pri rily toward the FttLmeant of the certifying officers' accunts4 ad Included *asexaiastio of adinistratlw procedur. anenostrols relating to the collse- tilo aid diebreouent of find., and such tests of Individual finacial tram actioua as we considered appropriate. Program operation. Were not included In our review. We refltevd the Iintenal auditor.' work mad we deed this work to be of quality aid coverage to eomal us to limit our tests of the acconting records W* found the financial mfmagemest system, including Internal controls, to be generally satisfactory, ad the fi maeia trasactias tested by us wer processed In a matisfactory meanner. _wver, we noted a need for Ilproveeat In certain procedure. and catrols as the defielaci e ssertsed In this report show. The deficioucies were dIseused with _ubers of your staff a*d correcttwv action was either initiated ur wns beiug coasidered. A muiry of the deficieuciee follows: -About $250,000 of $4.1 million of cash received by the HUD regional office during our teat period, the 3 montha ended Septeober 30, 1970, was not recorded In the ai1l room control register. These receipts had not boen recorded because cash received (1) by mail uhich Is not opened in the mail room, and (2) by messenger from the city of Chicago, t. delivered directly to the accounting section. -- 50TH ANNIVERSARY 1921- 1971 Additionally, control of cash received in offices of the regiom located several city blocks from thu regional office was sot established wutil after the cash had beet transferred by asseapr to the regiosal office nail room. -Coutrery to Federal property oanagaut regulatioma, the IMD reglaal office had leasod, since October 1969, varying areas of office space directly from a Chicago building corporation at a coat of about $15,000. -Of 98 time and attendance records e*xsted, 24 had not been po ted to show the employees' state during the 6 days of the pay period which had already elepsud, and 14 were posted In advance for the 4 remaining days of the pay period. -- Of 19 euployees distributing payroll 4hecks to other euployees, 17 had not been designated au check distri- bution clerk.; 2 of the employee_ distrlbuting payroll checks were also til sad attendance clerks. In accordance with Chapter 3, Title S, of the General Accounting Office Policy and Procedures Manual for Guidance of Federal Agencies, the record. of financial transactions throuth June 30, 1971, my be transmitted to the Federal Records Center for storage as provided by your agency's over-all records manage- aent progr_. Copies of this report are being sent to the Secretary, the Assistant Secretary for Administration, and the Director of the Office of Audit, Departimnt of Housing and Urban Dsvelopment. We wish to acknowledge the cooperation extended to our representatives during this review, and vould appreciate being advised of the final action takcn on the foregoing ites . Sincerely yours, *~ *\ \- .Jytjji ~~~* v ,RWla He. R. Wolfson ' Regional Manager
Settlement of the Certifying Officers' Accounts
Published by the Government Accountability Office on 1971-09-29.
Below is a raw (and likely hideous) rendition of the original report. (PDF)