U.S. Department of Housing and Urban Development District Office of the Inspector General Office of Audit Richard B. Russell Federal Building 75 Spring Street, SW, Room 330 Atlanta, GA 30303-3388 (404) 331-3369 April 23, 2001 Audit Memorandum No. 2001-AT-1803 MEMORANDUM FOR: John L. Perry, Director, Georgia State Office of Community Planning and Development, 4AD FROM: Nancy H. Cooper District Inspector General for Audit-Southeast/Caribbean, 4AGA SUBJECT: Accounting System Evaluation Veterans Opportunity and Resource Center, Inc. Atlanta, Georgia INTRODUCTION As you requested, we have completed a limited evaluation of the new accounting system implemented by Veterans Opportunity and Resource Center, Inc. (VORCI). Your request was the result of a monitoring visit by your staff to VORCI. During this visit, your staff determined that VORCI’s accounting system was not adequate to properly account for the receipt and disbursement of grant funds and the charging of costs to the various grant programs. VORCI informed your staff that it had installed a new accounting system to correct this problem. Our review was limited to the review of this new system. SCOPE OF REVIEW We conducted the evaluation to determine if VORCI had implemented an adequate financial management system to account for the grant funds for which it has applied. This review was not an audit made in accordance with generally accepted auditing standards. Our evaluation included a review of the Supportive Housing Program grant proposal and budget, discussions with Arthur C. Barham, Executive Director, and Jennifer Neely, Administrative Operations Manager, a “walk through” of the new accounting system, a review of various accounting forms, and VORCI’s Financial Management System Handbook that establishes, among other things, internal control and purchasing procedures. Visit the Office of Inspector General on the World Wide Web at http://www.hud.gov/oig/oigindex.html Exit OBSERVATIONS Based on our review, we determined that VORCI has an adequate financial management system in place to account for Supportive Housing Program grant funds. We noted that although VORCI has developed new forms to keep track of the time an employee spends on each grant, they were currently not being used. The use of these forms applies primarily to administrative personnel, such as the Executive Director and Administrative Operations Manager, who perform administrative functions for the various grants. The budget for the proposed grant shows the Administrative Operations Manager charging 100 percent of her time to the grant. Discussions with the Manager, however, show she will also be spending time on other grants. We discussed this with the Executive Director and the Administrative Operations Manager. They agreed the forms would be used to track the employees’ time. This memorandum is for your information and does not require a response. If you have any questions, please contact Terry Cover, Assistant District Inspector General for Audit, or myself at (404) 331- 3369. Exit DISTRIBUTION Director, Veterans Opportunity and Resource Center, Inc. Secretary, S Deputy Secretary, SD (Room 10100) Chief of Staff, S (Room 10000) Assistant Secretary for Administration, S (Room 10110) Acting Assistant Secretary for Congressional and Intergovernmental Relations, J (Room 10120) Deputy Assistant Secretary, Office of Public Affairs, S, (Room 10132) Deputy Assistant Secretary for Administrative Services, Office of the Executive Secretariat, AX (Room 10139) Deputy Assistant Secretary for Intergovernmental Relations, Acting Deputy Chief of Staff, S (Room 10226) Deputy Chief of Staff for Policy, S (Room 10226) Deputy Chief of Staff for Programs, S (Room 10226) Special Counsel to the Secretary, S (Room 10234) Senior Advisor to the Secretary, S Special Assistant for Inter-Faith Community Outreach, S (Room 10222) Executive Officer for Administrative Operations and Management, S (Room 10220) General Counsel, C (Room 10214) Assistant Secretary for Housing/Federal Housing Commissioner, H (Room 9100) Assistant Secretary for Policy Development and Research, R (Room 8100) Assistant Secretary for Community Planning and Development, D (Room 7100) Assistant Deputy Secretary for Field Policy and Management, SDF (Room 7108) Office of Government National Mortgage Association, T (Room 6100) Assistant Secretary for Fair Housing and Equal Opportunity, E (Room 5100) Director, Office of Departmental Equal Employment Opportunity, U Chief Procurement Officer, N (Room 5184) Assistant Secretary for Public and Indian Housing, P (Room 4100) Director, Office of Departmental Operations and Coordination, I (Room 2124) Office of the Chief Financial Officer, F (Room 2202) Chief Information Officer, Q (Room 3152) Acting Director, HUD Enforcement Center, V, 1250 Maryland Avenue, SW, Suite 200 Acting Director, Real Estate Assessment Center, X, 1280 Maryland Avenue, SW, Suite 800 Director, Office of Multifamily Assistance Restructuring, Y, 1280 Maryland Avenue, SW, Suite 4000 Inspector General, G (Room 8256) Exit Secretary's Representative, 4AS Audit Liaison Officer, 3AFI Audit Liaison Officer, Office of Community Planning and Development, DOT (Room 7220) Departmental Audit Liaison Officer, FM (Room 2206) Acquisitions Librarian, Library, AS (Room 8141) Counsel to the IG, GC (Room 8260) HUD OIG Webmanager-Electronic Format Via Notes Mail (Cliff Jones@hud.gov) Public Affairs Officer, G (Room 8256) Stanley Czerwinski, Associate Director, Resources, Community, and Economic Development Division, U.S. GAO, 441 G Street N.W., Room 2T23, Washington DC 20548 The Honorable Fred Thompson, Chairman, Committee on Governmental Affairs, United States Senate, Washington DC 20510-6250 The Honorable Joseph Lieberman, Ranking Member, Committee on Governmental Affairs, United States Senate, Washington DC 20510-6250 The Honorable Dan Burton, Chairman, Committee on Government Reform, United States House of Representatives, Washington DC 20515-6143 The Honorable Henry A. Waxman, Ranking Member, Committee on Government Reform, United States House of Representatives, Washington, DC 20515-4305 Ms. Cindy Fogleman, Subcommittee on Oversight and Investigations, Room 212, O'Neil House Office Building, Washington, DC 20515-6143 Steve Redburn, Chief, Housing Branch, Office of Management and Budget, 725 17th Street, NW, Room 9226, New Executive Office Bldg., Washington, DC 20503 Sharon Pinkerton, Deputy Staff Director, Counsel, Subcommittee on Criminal Justice, Drug Policy and Human Resources, B373 Rayburn House Office Bldg., Washington, DC 20515 Armando Falcon, Director, Office of Federal Housing Enterprise Oversight, O, 1700 G Street, NW, Room 4011, Washington, DC 20552 Exit
Accounting System Evaluation, Veterans Opportunity and Resource Center, Inc., Atlanta, Georgia
Published by the Department of Housing and Urban Development, Office of Inspector General on 2001-04-23.
Below is a raw (and likely hideous) rendition of the original report. (PDF)