Finding Text
Financial Reporting
Finding Number: 2022-009
Assistance Listing Number and Title: AL # 14.871 - Section 8 Housing Choice Vouchers/Housing Voucher Cluster
Federal Award Identification Number / Year: 2022
Federal Agency: U.S. Department of Housing and Urban Development
Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles, Eligibility, Reporting, Special Tests and Provisions
Pass-Through Entity: N/A
Repeat Finding from Prior Audit? Yes
Prior Audit Finding Number: 2021-007
Sound accounting practices require that when designing the public office’s system of internal control and the specific control activities, management should ensure adequate security of assets and records, and verify the existence and valuation of assets and liabilities and periodically reconcile them to the accounting records. As noted in Finding 2022-003, the Authority was unable to provide audit evidence to support the completeness of the amounts reported on the financial statements, as well as certain transactions, including fraudulent transactions. Due to lack of audit evidence, the necessary adjustments to the financial statements for the issues identified in Finding 2022-003 were undeterminable and we were unable to express an opinion on the Authority’s accompanying financial statements or determine the completeness of the amounts reported on the Schedule of Expenditures of Federal Awards. As a result, we were also unable to obtain audit evidence supporting the completeness of the populations for testing the program compliance requirements, and unable to determine whether the Authority complied with the Activities Allowed or Unallowed, Allowable Cost / Cost Principles, Eligibility, Reporting or Special Tests and Provisions compliance requirements. Therefore, we have issued a disclaimer of opinion on the Housing Voucher Cluster program compliance.
See Finding 2022-003 in Section 2 above. Uniform Guidance also requires us to report this finding in this section of this Schedule.