Finding Text
2024-003 - Preparation of Schedule of Federal Expenditures (design deficiency) applicable to CFDA #10.427. Criteria: Uniform Guidance requires that the Housing Authority "identify, in its accounts, all federal awards received and expended and the federal programs under which they were received. Federal program and award identification shall include, as applicable, the CFDA title and number, award number and year, name of the federal agency, and name of the pass-through entity. In addition, the Housing Authority is required to prepare appropriate financial statements, including the schedule of expenditures of federal awards expended. Condition: As is the case with many housing authorities, the Housing Authority administers several federal grants that include noncash principal and interest subsidies. The Housing Authority was unable to provide us with a schedule of federal expenditures that included the noncash principal and interest subsidies. Cause: The Housing Authority did not compute noncash principal and interest subsidies and record them in their general ledger. Effect: If the audit firm computes the principal and interest subsidies incorrectly, the wrong amount of assistance expended could be reported in error. Recommendation: We recommend that the Housing Authority assign an individual internally that is qualified to prepare this schedule. Management's Response: The Housing Authority agrees with this finding and will work to alleviate this issue.