oversight

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)

                    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