Weaknesses in the Department of Housing and Urban Development's Financial Management System

A questionnaire survey was conducted to evaluate the adequacy of procedures and controls for revenue and expenditure transactions of the Department of Housing and Urban Development (HUD). The questionnaire was designed to identify potential problem areas and covered the system of internal controls over collections, imprest funds, disbursements, and obligations.

Collections were not promptly deposited by three regional accounting stations because these regions were not following established HUD procedures. Three regions were also taking excessive time to deposit collections received from delinquent borrowers. It was not uncommon for these collections to be deposited between 1 and 2 months after the date of remittance. In several instances, this time period exceeded 100 days. Several regional accounting stations did not adequately account for or physically control collections promptly upon receipt. Collections were not adequately safeguarded at four stations. Individual employees were given too many responsibilities in the handling of collections at three stations; consequently, internal controls over collections were compromised. Imprest fund cashiers at most accounting stations did not adequately safeguard, account for, or control imprest funds. Travel advances at four stations were not systematically or consistently aged. Several regional accounting stations did not adequately support disbursements or show the basis and computation of estimates on obligating documents.