Audit 297841

Section Eight Housing Choice Voucher Program-CDFA #14.871 Finding 2023-001-Non current Valuations and Inadequate Disclosure for Defined Benefit Pension Plan-Reporting Criteria and Condition All material amounts included in the financial statements should have valuations as of the last day of the audit year. In addition, the footnotes should include all of the disclosures that are required. Both of these elements are required by accounting principles generally accepted in the United States. Context Other Assets, Deferred Outflows of Resources, and Deferred Inflow of Resources have not been revised since the valuations for the year ended June 30, 2022. In addition, Footnote 8 does not provide all of the required elements for the defined benefit plan. Effect The three financial amounts noted above may be materially misstated in the financial statements. In addition, certain readers of the footnotes may not have sufficient information for the defined benefit plan. Cause Accounting did not calculate and valuate the above mentioned numbers for the audit year. We do not know the reason. In the prior year, we suggested that management contract with Accounting to prepare the footnote with all of the adequate required disclosures. This was not done. Questioned Costs None Recommendation Accounting should annually adjust the above mentioned numbers in accordance with Government Accounting Standards Bulletin (GASB) No. 68. In addition, management should contract with Accounting to prepare the required footnote, with all of the required disclosures required by GASB 68. View of Responsible Official I am Roxanne Albizuri, Executive Director and Designated Person to answer this finding. We will comply with the auditor’s recommendation.

Section Eight Housing Choice Voucher Program-CDFA#14.871 Finding 2023-002-Software Subscription Costs Not Properly Accounted For-Reporting Criteria and Condition For June 30, 2023 year-ends and forward, Government Auditing Standard (GASB) No. 96 applies. This requires a new accounting for subscription (lease)-based information technology arrangements (SBITAs). The Authority entered into a five-year agreement that started May 1, 2021 with a software company. Context The Authority did not adequately address this arrangement from an accounting standpoint. Effect Certain assets, liabilities, and expenses do not properly reflect the subscription costs associated with the software. Cause Apparent oversight. Questioned Costs None Recommendation Evaluations of the applicable assets, liabilities, and expenses related to this should be properly evaluated in the future, especially at the next fiscal year end. View of Responsible Official We will comply with the auditor’s recommendation.

Section Eight Housing Choice Voucher Program-CDFA #14.871 Finding 2023-001-Non current Valuations and Inadequate Disclosure for Defined Benefit Pension Plan-Reporting Criteria and Condition All material amounts included in the financial statements should have valuations as of the last day of the audit year. In addition, the footnotes should include all of the disclosures that are required. Both of these elements are required by accounting principles generally accepted in the United States. Context Other Assets, Deferred Outflows of Resources, and Deferred Inflow of Resources have not been revised since the valuations for the year ended June 30, 2022. In addition, Footnote 8 does not provide all of the required elements for the defined benefit plan. Effect The three financial amounts noted above may be materially misstated in the financial statements. In addition, certain readers of the footnotes may not have sufficient information for the defined benefit plan. Cause Accounting did not calculate and valuate the above mentioned numbers for the audit year. We do not know the reason. In the prior year, we suggested that management contract with Accounting to prepare the footnote with all of the adequate required disclosures. This was not done. Questioned Costs None Recommendation Accounting should annually adjust the above mentioned numbers in accordance with Government Accounting Standards Bulletin (GASB) No. 68. In addition, management should contract with Accounting to prepare the required footnote, with all of the required disclosures required by GASB 68. View of Responsible Official I am Roxanne Albizuri, Executive Director and Designated Person to answer this finding. We will comply with the auditor’s recommendation.

Section Eight Housing Choice Voucher Program-CDFA#14.871 Finding 2023-002-Software Subscription Costs Not Properly Accounted For-Reporting Criteria and Condition For June 30, 2023 year-ends and forward, Government Auditing Standard (GASB) No. 96 applies. This requires a new accounting for subscription (lease)-based information technology arrangements (SBITAs). The Authority entered into a five-year agreement that started May 1, 2021 with a software company. Context The Authority did not adequately address this arrangement from an accounting standpoint. Effect Certain assets, liabilities, and expenses do not properly reflect the subscription costs associated with the software. Cause Apparent oversight. Questioned Costs None Recommendation Evaluations of the applicable assets, liabilities, and expenses related to this should be properly evaluated in the future, especially at the next fiscal year end. View of Responsible Official We will comply with the auditor’s recommendation.