Finding Text
Finding No.: 2024-003 Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: Housing Voucher Cluster Area: Special Tests and Provisions - Rolling Forward Equity Balances Questioned Costs: $0 Criteria: In accordance with applicable special tests and provisions for rolling forward equity balances, the Annual Contributions Contract (ACC) requires Public Housing Agencies (PHAs) to properly account for program activity by properly maintaining account balances, by supporting a proper roll-forward of equity with records and accounting transactions, and by correcting detected errors. Condition: Beginning balances of equity, including any adjustments by GHURA, per the FY2024 Trial Balance (TB) did not agree with the audited ending balances per the FY2023 Single Audit Report (SAR). We noted variances, as follows: Account ALN Per 2024 TB Per 2023 SAR Over- (Under-)Recorded Variance Housing Assistance Payments Equity (Deficit) 14.EHV $ 233,457 $ - $ (233,457) Administrative Fee Equity (Deficit) 14.HCC $ (229,709) $ (603,753) $ (374,044) Administrative Fee Equity (Deficit) 14.871 $ 6,874,931 $ (13,329,305) $ 20,204,236 Housing Assistance Payments Equity (Deficit) 14.871 $ (3,250,625) $ 6,729,955 $ (9,980,580) Administrative Fee Equity (Deficit) 14.879 $ - $ (35,651) $ (35,651) Housing Assistance Payments Equity (Deficit) 14.879 $ 154,055 $ (35,651) $ (189,706) Cause: GHURA did not effectively enforce monitoring controls over compliance with special tests and provisions requirements for rolling forward equity balances. Effect: GHURA is not in compliance with applicable special tests and provisions requirements for rolling forward equity balances. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Identification as a Repeat Finding: 2023-004 Finding No.: 2024-003, continued Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: Housing Voucher Cluster Area: Special Tests and Provisions - Rolling Forward Equity Balances Questioned Costs: $0 Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable special tests and provisions requirements for rolling forward equity balances. Responsible personnel should reconcile the current year beginning balances with the prior year ending balances and should record adjustments, as necessary, to properly roll forward audited amounts. Views of Responsible Officials: Refer to GHURA’s corrective action plan.