Audit 297529

Type of Finding: Significant Deficiency in Internal Control over Financial Reporting. Condition: There is minimal segregation of duties among personnel involved in the accounting function. Criteria or Specific Requirement: A proper segregation of duties is an important component of a system of strong internal controls and should be implemented if possible. Cause: There are a small number of personnel to whom to allocate responsibilities in accounting functions. Effect: A lack of segregation of duties increase the risk that errors may occur and not be prevented or detected on a timely basis. Repeat Finding: Yes, Prior year finding 2022-001. Recommendation: Responsibilities and duties should be segregated whenever possible. When this condition exists, management's and the board's close supervision and review of accounting information can help to prevent or detect errors and irregularities.

Type of Finding: Other Matters, Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: HUD requires security deposits refunds to be disbursed to the former tenant and in the appropriate amount within 30 days of move-out. If no refund is given, the tenant should receive and itemized listing of any unpaid rent, damages to the unit, and any estimated cost for repair. Condition: We noted a refund was not provided to a tenant within 30 days after the tenant's move-out date.. Questioned Costs: None Context: We noted a refund was not provided to a tenant within 30 days after the tenant's move-out date. Cause: Management oversight. Effect: The corporation is not in compliance with HUD requirements. Repeat Finding: Yes, Prior year finding 2022-002 Recommendation: To establish proper internal control over security deposit refunds, the Corporation should design and implement the necessary procedures to ensure the move-out notifications are provided to the accounting office in a timely manner and ensure the tenant's security deposit is processed and refunded within 30 days of the move-out date.

Type of Finding: Significant Deficiency in Internal Control over Financial Reporting. Condition: There is minimal segregation of duties among personnel involved in the accounting function. Criteria or Specific Requirement: A proper segregation of duties is an important component of a system of strong internal controls and should be implemented if possible. Cause: There are a small number of personnel to whom to allocate responsibilities in accounting functions. Effect: A lack of segregation of duties increase the risk that errors may occur and not be prevented or detected on a timely basis. Repeat Finding: Yes, Prior year finding 2022-001. Recommendation: Responsibilities and duties should be segregated whenever possible. When this condition exists, management's and the board's close supervision and review of accounting information can help to prevent or detect errors and irregularities.

Type of Finding: Other Matters, Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: HUD requires security deposits refunds to be disbursed to the former tenant and in the appropriate amount within 30 days of move-out. If no refund is given, the tenant should receive and itemized listing of any unpaid rent, damages to the unit, and any estimated cost for repair. Condition: We noted a refund was not provided to a tenant within 30 days after the tenant's move-out date.. Questioned Costs: None Context: We noted a refund was not provided to a tenant within 30 days after the tenant's move-out date. Cause: Management oversight. Effect: The corporation is not in compliance with HUD requirements. Repeat Finding: Yes, Prior year finding 2022-002 Recommendation: To establish proper internal control over security deposit refunds, the Corporation should design and implement the necessary procedures to ensure the move-out notifications are provided to the accounting office in a timely manner and ensure the tenant's security deposit is processed and refunded within 30 days of the move-out date.