SIGNIFICANT DEFICIENCY 2022-001 Financial Close Process Recommendation: The Authority should re-evaluate its financial reporting system: reviewing the general ledger mapping and close processes. This determines whether additional controls over the preparation of the final trial balances and related ...
SIGNIFICANT DEFICIENCY 2022-001 Financial Close Process Recommendation: The Authority should re-evaluate its financial reporting system: reviewing the general ledger mapping and close processes. This determines whether additional controls over the preparation of the final trial balances and related schedules can be implemented to provide reasonable assurance that financial statements are prepared in accordance with U.S. GAAP and HUD Public Housing Authority accounting briefs. We recommend the Authority to review its current procedures for reconciliations and year end close procedures and evaluate the need for additional review to ensure accurate reporting. Explanation of disagreement with audit finding: While management agrees that improvements are needed, related to the newly implemented financial software the City of Arlington adopted; including mapping of the general ledger and with coordination with the Federal Data Schedule (FDS), management believes actual internal controls are effective as demonstrated by previous audits. The AHA should have until 6/30/2023 to complete the audit. However, because AHA is a component unit of the City, the timeline to complete the audit is much earlier, reducing the time available to complete the corrections needed to account for the new financial software. Action planned in response to finding: Management and the City of Arlington are working with consultants to improve general ledger mapping and crosswalks to the FDS. Name(s) of the contact person(s) responsible for corrective action: Mindy Cochran and Borhan Uddin Planned completion date for corrective action plan: June 30, 2023 2022~002 Housing Voucher Cluster-Assistance Listing No. 14.871/14.879 Recommendation: We recommend that the Authority reviews its internal controls over obtaining and maintaining income, expense tenant file documentation, and reviewing the calculation to ensure compliance with eligibility requirements. Explanation of disagreement with audit finding: There is no disagreement with this finding. However, management maintains that internal controls are effective noting that errors are found and corrected through the internal control processes. Human errors do occur, and internal controls cannot cover the thousands of transactions processed annually. AHA's SEMAP scores consistently recognize AHA as a high performer, scoring all points in indicators 3 and 10 which monitor correct calculations for adjusted income and correct tenant rent calculations. AHA does intend to increase internal audits through the addition of a dedicated compliance staff member. Action planned in response to finding: Both errors have been corrected. The total dollar amount of rental assistance provided was $162 for both errors. AHA is in the process of hiring for additional compliance reviews. Name(s) of the contact person(s) responsible for corrective action: Mindy Cochran Planned completion date for corrective action plan: Corrections have been made for the two files indicated, and hiring for compliance is expected to be complete by June 30, 2023.