Corrective Action Plans

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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.
Resources: Online HUD accounting Webinars or Self Study classes. Example AICPA, AHACPA, or Wester CPE
Resources: Online HUD accounting Webinars or Self Study classes. Example AICPA, AHACPA, or Wester CPE
Corrective Action Plan
Corrective Action Plan
Action: Management needs to monitor and review the processing of monthly financial statements to detect any errors in recording transactions. Further management needs to monitor and review on a monthly basis the processing of bank reconciliations. To Provide Mandatory training to accounting personne...
Action: Management needs to monitor and review the processing of monthly financial statements to detect any errors in recording transactions. Further management needs to monitor and review on a monthly basis the processing of bank reconciliations. To Provide Mandatory training to accounting personnel on certain accounting principles regarding HUD Multifamily Housing. This includes taking accounting continuing education classes in accounting for HUD Projects. Create an Internal Auditing function within the Management company.
Responsibility: The Accounting Manager is responsible for providing the training and assigning certain accounting classes that can be done online.
Responsibility: The Accounting Manager is responsible for providing the training and assigning certain accounting classes that can be done online.
Timeline: Training to begin within 30 days of the audit report’s issuance.
Timeline: Training to begin within 30 days of the audit report’s issuance.
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