Name of Contact Person: Lacie Jacobs, Finance Director
Heather Woody, Deputy Finance Director
Corrective Action Plan: Prior to fiscal year 2008-2009, and before the current HUD Director and Finance staff were hired, the HUD department at the federal level requested each location identify a...
Name of Contact Person: Lacie Jacobs, Finance Director
Heather Woody, Deputy Finance Director
Corrective Action Plan: Prior to fiscal year 2008-2009, and before the current HUD Director and Finance staff were hired, the HUD department at the federal level requested each location identify a reserve amount to cover one year’s administrative cost on their report. When Columbus County recorded this reserve amount, it was recorded as a liability on the balance sheet (Operating Reserve-Vouchers) and not in equity. When this change occurred, the staff quit reporting this amount on the VMS statements. Also, when the Finance office took over the responsibility of keeping up with the changes in restricted and unrestricted funds; interest, fraud recovery, returned HAP payments and any refunds were not being added back into the funds. Between these two issues, it caused a difference between our reported fund balance (equity) on our VMS statements and our actual fund balance in the accounting software. No error was identified in years prior. To fix the issue, we corrected the classification of the Reserve account on the balance sheet and incorporated it with our unrestricted fund balance. We also classified our restricted fund balance clearly on the balance sheet. Also, the finance office amended the restricted and unrestricted logs and corrected the VMS reports to match the updated logs going back to June 30, 2021. Going forward, the finance office and the HUD department will keep dual month 13 VMS worksheets and restricted and unrestricted logs that should tie to our accrual accounting system.
Proposed Completion Date: June 30, 2022