Finding Text
Material Internal Control Weakness - Public and Indian Housing - ALN No. 14.850 and Public Housing Capital Fund - ALN No. 14.872. Criteria or Specific Requirement: Operating subsidy and capital fund draw-downs should be properly recorded in the PHA's general ledger. Condition: - Operating subsidy and capital fund draw-downs totaling $199,325 were recorded as deferred revenues in an account called "Unknown HUD Deposits". Cause: The PHA's fee accountant was unable to determine how to properly classify the draw-downs. Effect: HUD grants revenue was misstated by $199,325 requiring an audit adjustment to properly classify the draw-downs. Questioned Costs: Not applicable. Repeat Finding: Not a repeat finding. Recommendation: The PHA should forward a copy of all HUD draw-down requisitions to its fee accountant so that revenues can be properly recorded. Response: The PHA will make sure its fee accountant receives a copy of all draw-down requisitions.