Finding 1096999 (2023-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2025-01-28
Audit: 340118
Auditor: Kerberrose Sc

AI Summary

  • Core Issue: The Authority lacks personnel with the necessary education and experience to prepare financial statements according to GAAP.
  • Impacted Requirements: Financial statements must include all required disclosures and adhere to GAAP standards.
  • Recommended Follow-Up: Continue utilizing external auditors for financial statement preparation and ensure thorough management review for accuracy.

Finding Text

Criteria:Internal control systems should include personnel with sufficient education, training and/or experience to prepare financial statements in accordance with generally accepted accounting principles (GAAP) including all required disclosures. Condition: Absence of personnel with the sufficient education, training and/or experience to prepare financial statements in accordance with generally accepted accounting principles Cause: Due to the small size of the Authority and the limited number of accounting personnel, no individual is skilled in the preparation of financial statements in accordance with generally accepted accounting principles including all required notes. Effect: During the course of our audit, we prepared the financial statements; however, management of the Authority thoroughly reviewed them and accepted responsibility for their completeness and accuracy. Recommendation: Continue to use the services of the external audit firm to prepare the Authority’s financial statements in accordance with generally accepted accounting principles. Management's Response: The Authority agrees with the finding. It will continue to use its external auditors to prepare its financial statements. Management will continue to thoroughly review and accept responsibility for the completeness and accuracy of the financial statements.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 520555 2023-001
    Significant Deficiency
  • 520556 2023-001
    Significant Deficiency
  • 520557 2023-001
    Significant Deficiency
  • 520558 2023-001
    Significant Deficiency
  • 520559 2023-002
    Significant Deficiency
  • 520560 2023-002
    Significant Deficiency
  • 520561 2023-002
    Significant Deficiency
  • 520562 2023-002
    Significant Deficiency
  • 1096997 2023-001
    Significant Deficiency
  • 1096998 2023-001
    Significant Deficiency
  • 1097000 2023-001
    Significant Deficiency
  • 1097001 2023-002
    Significant Deficiency
  • 1097002 2023-002
    Significant Deficiency
  • 1097003 2023-002
    Significant Deficiency
  • 1097004 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $1.33M
10.415 Rural Rental Housing Loans $93,367
10.427 Rural Rental Assistance Payments $44,008
14.856 Lower Income Housing Assistance Program Section 8 Moderate Rehabilitation $10,640