Corrective Action Plans

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The findings from the June 30, 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. A. Current Findings on the Schedule of Findings and Recommendations 1. Finding 2025-001 - Residual receipts deposits no...
The findings from the June 30, 2025 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. A. Current Findings on the Schedule of Findings and Recommendations 1. Finding 2025-001 - Residual receipts deposits not made timely - Significant Deficiency Federal Program Name: Project-Based Rental Assistance - Section 8 Project Based Cluster Assistance Listing Number: 14.195 Federal Award Identfication Number and Year: MA06T831033-25Z, MA06T791016-25Z. Program year - 2025. a. Issue: During the year ended June 30, 2025, management did not make the required residual receipts reserve deposit in the amount of $34,811, within 90 days of June 30, 2024 as required by HUD. The residual receipts amount was deposited in October 2025. b. Recommendation: Management should establish internal controls and procedures to ensure that required residual receipts reserve deposits are made timely. c. Action taken: Management agrees with the finding and has implemented controls to ensure the residual receipts deposits are timely made within 90 days of year end. B. Status of Corrective Actions on Findings Reported in the Schedule of the Status of Prior Audit Findings, Questioned Costs and Recommendations No prior year audit findings identified.
The District recognizes the limited staff in the Business Office makes segregating duties virtually impossible. The Board does rely on the Business Manager to keep them updated on the financial state of the District and, due to financial constraints, does not intend to increase staffing at this time...
The District recognizes the limited staff in the Business Office makes segregating duties virtually impossible. The Board does rely on the Business Manager to keep them updated on the financial state of the District and, due to financial constraints, does not intend to increase staffing at this time.
1. To Provide Mandatory training to accounting personnel on certain accounting principles regarding
1. To Provide Mandatory training to accounting personnel on certain accounting principles regarding
HUD Multifamily Housing. This includes taking accounting continuing education classes in accounting
HUD Multifamily Housing. This includes taking accounting continuing education classes in accounting
for HUD Projects. Create an Internal Auditing function. Management provide a structure and process
for HUD Projects. Create an Internal Auditing function. Management provide a structure and process
to review and monitor the processing of monthly financial statements and transactions. Management
to review and monitor the processing of monthly financial statements and transactions. Management
must also review and monitor the processing of monthly bank reconciliations. By providing these
must also review and monitor the processing of monthly bank reconciliations. By providing these
processes it will reduce the risk of material misstatements and increase the likelihood that financial
processes it will reduce the risk of material misstatements and increase the likelihood that financial
statements will be produced at a reasonable period after year end.
statements will be produced at a reasonable period after year end.
2. Management utilizing the Internal Audit Function should revise its internal control system as follows:
2. Management utilizing the Internal Audit Function should revise its internal control system as follows:
a. Identify major areas of risk of material misstatement and/or fraud. As an example, the areas may
a. Identify major areas of risk of material misstatement and/or fraud. As an example, the areas may
include; late Audit reporting, identifying areas of risk of material misstatement such as making
include; late Audit reporting, identifying areas of risk of material misstatement such as making
timely required deposits to the reserve accounts including Residual Receipts, failing to review
timely required deposits to the reserve accounts including Residual Receipts, failing to review
prior year audit reports or audit findings, Proper and accurate reporting on a consistent and
prior year audit reports or audit findings, Proper and accurate reporting on a consistent and
ongoing basis to the most current HUD chart of accounts.
ongoing basis to the most current HUD chart of accounts.
b. Create or review existing controls to minimize risk, such as a system to review the financial
b. Create or review existing controls to minimize risk, such as a system to review the financial
statements general ledgers, bank reconciliations and all major fiscal management areas including
statements general ledgers, bank reconciliations and all major fiscal management areas including
occupancy and the submissions of all reports to HUD.
occupancy and the submissions of all reports to HUD.
c. Monitor the controls on systematic and continuous basis.
c. Monitor the controls on systematic and continuous basis.
The purpose of the above is to detect & address risk of material misstatement or Fraud at the earliest
The purpose of the above is to detect & address risk of material misstatement or Fraud at the earliest
Responsibility: The Upper Management and the Accounting Manager is responsible for providing the training and assigning certain accounting classes that can be done online.
Responsibility: The Upper Management and the Accounting Manager is responsible for providing the training and assigning certain accounting classes that can be done online.
Timeline: Recommendations should begin within 30 days of the audit report’s issuance.
Timeline: Recommendations should begin within 30 days of the audit report’s issuance.
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