Finding Text
Finding #2023-004: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 and
Section 221(d)(4) Insured Loan Program Assistance Listing 14.155
Condition: The Corporation did not record credit card charges or reconcile the credit card
payable account to the credit card statement during 2023.
Criteria: Under GAAP and Uniform Guidance compliance requirements the Corporation
is required to account for expenses and liabilities to ensure the financial
statements are materially stated and expenses are in compliance with Uniform
Guidance requirements.
Questioned Costs: $216,657
Effect: The Corporation is not in compliance with Uniform Guidance.
Cause: The Corporation has expense report procedures in place, however, these
procedures have not been followed. Expense reports and receipts have not been
provided or approved by management resulting in the understatement of
expenses and liabilities.
Repeat Finding: No
Recommendation: Management needs to provide oversight and monthly monitoring to ensure
employees follow the expense report policies and expenses are proper
expenditures of the Corporation and properly recorded in the financial
statements.
Management’s Views: For unsubmitted expense reports, management will record the proper accrual for
expenses.