Finding 1105731 (2024-001)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-03-21
Audit: 347328
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

  • 529287 2024-001
    Significant Deficiency Repeat
  • 529288 2024-002
    Significant Deficiency Repeat
  • 529289 2024-001
    Significant Deficiency Repeat
  • 529290 2024-002
    Significant Deficiency Repeat
  • 529291 2024-001
    Significant Deficiency Repeat
  • 529292 2024-002
    Significant Deficiency Repeat
  • 1105729 2024-001
    Significant Deficiency Repeat
  • 1105730 2024-002
    Significant Deficiency Repeat
  • 1105732 2024-002
    Significant Deficiency Repeat
  • 1105733 2024-001
    Significant Deficiency Repeat
  • 1105734 2024-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $1.25M
10.415 Rural Rental Housing Loans $92,393
10.427 Rural Rental Assistance Payments $45,868