Finding 1130473 (2024-003)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2025-04-03

AI Summary

  • Core Issue: The Organization lacks reconciliation of real estate held for sale with the general ledger, leading to potential financial misstatements.
  • Impacted Requirements: Internal controls over financial reporting are inadequate due to management oversight.
  • Recommended Follow-Up: Conduct quarterly reviews and reconciliations of real estate listings, investigate discrepancies, and track individual real estate transactions for accuracy.

Finding Text

Real Estate Held for Sale and Development Tracking Material Weakness Condition: Condition: The Organization does not reconcile its real estate held for sale to the general ledger. Criteria: Adequate internal control functions over the financial reporting process. Cause: Oversight by management. Effect: Misstatement of the Organization's financial statements will not be prevented, or detected and corrected, on a timely basis. Recommendation: We recommend that the Organization review detailed real estate listings and the supporting documentation from third parties on at least a quarterly basis and reconcile the listing to the general ledger, with any large discrepancies investigated. Additionally, we recommend that purchases and sales of real estate be tracked on an individual item basis to include the date of the purchase and/or sale. This will help ensure that real estate held for sale or development is accurately recorded in the financial statements. View of Responsible Official and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Categories

Internal Control / Segregation of Duties Procurement, Suspension & Debarment Material Weakness Reporting

Other Findings in this Audit

  • 554029 2024-001
    Material Weakness
  • 554030 2024-002
    Material Weakness
  • 554031 2024-003
    Material Weakness
  • 554032 2024-004
    Material Weakness
  • 554033 2024-005
    Material Weakness
  • 554034 2024-006
    Material Weakness
  • 554035 2024-007
    Material Weakness
  • 554036 2024-008
    Material Weakness
  • 1130471 2024-001
    Material Weakness
  • 1130472 2024-002
    Material Weakness
  • 1130474 2024-004
    Material Weakness
  • 1130475 2024-005
    Material Weakness
  • 1130476 2024-006
    Material Weakness
  • 1130477 2024-007
    Material Weakness
  • 1130478 2024-008
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
21.027 Coronavirus State and Local Fiscal Recovery Funds $666,624
14.247 Self-Help Homeownership Opportunity Program $403,800
93.093 Health Profession Opportunity Grants $382,000
21.025 Small Dollar Loan Program $37,738
14.169 Housing Counseling Assistance Program $31,944