Finding Text
Finding Number 2024-001: Inaccessibility of Accounting Records
Condition:
During the performance of the audit the Authority was unable to provide timely access to key accounting
records necessary to verify financial transactions and support federal expenditures. Requested
documentation, including general ledger entries, supporting documentation, federal reimbursement
requests and related expenditures were either not provided or significantly delayed beyond the response
period.
Criteria:
Per GASB standards and the Uniform Guidance (§200.303), entities must establish and maintain
effective internal control systems that are properly documented and consistently applied to ensure the
reliability of financial reporting.
Cause:
The Authority lacks adequate record retention, organization and formalized policies which limits their
ability to respond to audits, reviews or compliance inquires in a timely manner.
Effect:
The absence of adequate documentation increases the risk of material misstatements in the financial
statements and limits the ability of management and auditors to verify the effectiveness of internal
controls. This condition contributed to multiple audit adjustments and delayed financial close processes.
Recommendation:
We recommend that management develop and implement standardized documentation protocols for all
key financial reporting controls. This should include written procedures, evidence of review and approval,
and periodic training for staff involved in financial reporting.
Management Response:
Today’s Marlboro County Housing Authority management acknowledges the finding and concurs with
the auditor’s assessment regarding delays in providing access to key accounting records during the
audit period. The Authority recognizes the importance of timely, complete, and well-organized
documentation to support financial transactions and federal expenditures. The Authority's current staff
did not have access to most of the data necessary to respond to the Auditor's request as the Authority
was managed by the Housing Authority of Florence during the current year under audit. The Authority
severed ties with the Housing Authority of Florence effective October 1, 2024. Going forward, The
Housing Authority will ensure internal controls are in place including policies and procedures regarding
financial reporting.