Finding Text
2021-003 Condition: Deficiencies Noted in Maintenance of the Cash Receipts and Deposits and the Tenant Accounts Receivable
During the review of twenty-five (25) Cash Receipts selected for audit, it was noted that the Authority did not make timely deposits and end of month reconciliations for all the receipts and deposits chosen. These deposit lags have created a reconciliation question for the fiscal year 2021.
Assistance Listing #: 14.867
Questioned Costs: Undetermined
Cause: The Authority’s deficiency stems from a lack of internal controls over tenant account and a loss of key personnel in this area.
Effect: The Authority is not in compliance with numerous HUD requirements.
Criteria: Annual Contributions Contracts
Recommendation: We recommend that the Authority utilize the tenant software to properly account for tenant balances.
Reply: Management agrees with the audit finding and the auditor’s recommendation. We will implement procedures and changes to ensure that this finding will be cleared by the subsequent fiscal year audit.