Core Issue: The PHA's financial statements had significant errors and did not match the REAC submission.
Impacted Requirements: Accurate financial reporting is essential for compliance and transparency.
Recommended Follow-Up: Hire an outside fee accountant or a qualified employee to improve financial accuracy.
Finding Text
Material weakness in internal control - Financial statements. Criteria or Specific Requirement: PHA's financial statements contained material misstatements and did not agree with the PHA's REAC submission. Condition: The PHA's financial statements were materially misstated requiring adjustments. Cause: The PHA has limited funds and did not employ an outside fee accountant. Effect: The PHA's financial statements were inaccurate. Questioned Costs: None. Repeat Finding: Not a repeat finding. Recommendation: The PHA should employ an outside fee accountant or an employee with accounting experience. Response: The PHA will hire an outside fee accountant or an employee with accounting experience.
Categories
HUD Housing ProgramsMaterial WeaknessInternal Control / Segregation of Duties