Finding 1179587 (2023-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2026-03-16

AI Summary

  • Core Issue: The general ledger expenses from January to August 2023 are missing vendor names, creating a documentation and audit trail deficiency.
  • Impacted Requirements: This affects the ability to trace expenses, verify their legitimacy, and perform reconciliations effectively.
  • Recommended Follow-Up: Implement measures to include vendor names in the GL to ensure complete documentation and maintain a clear audit trail.

Finding Text

As a result of our audit, we noted that for the period January 1, 2023, through August 31, 2023, the general ledger (GL) expenses do not include vendor names. This is an internal control deficiency related to documentation and completeness of the audit trail. This deficiency can fall into one of these categories: 1. Documentation Deficiency The GL lacks sufficient detail to identify the source of transactions. Without vendor names, you cannot easily trace expenses, verify legitimacy, or perform reconciliation. 2. Audit Trail Deficiency Auditors expect transactions to be traceable from the financial statements back to the supporting documents. Missing vendor names breaks that trail.

Corrective Action Plan

The Project has procedures in place to record transactions in the Financial Statements that identify sources and are traceable to assigned accounts. The Project will ensure that all transactions are appropriately posted. The Project transitioned to a new accounting software application during the months of January 2023 through August 2023 and processed financial transactions in parallel software applications during the period. Transactions were recorded in batch into the new software application and were supported by a manual disbursement log, present for the audit.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1179586 2023-001
    Material Weakness Repeat
  • 1179588 2023-002
    Material Weakness Repeat
  • 1179589 2023-002
    Material Weakness Repeat
  • 1179590 2023-003
    Material Weakness Repeat
  • 1179591 2023-004
    Material Weakness Repeat
  • 1179592 2023-005
    Material Weakness Repeat
  • 1179593 2023-006
    Material Weakness Repeat
  • 1179594 2023-007
    Material Weakness Repeat
  • 1179595 2023-007
    Material Weakness Repeat
  • 1179596 2023-008
    Material Weakness Repeat
  • 1179597 2023-008
    Material Weakness Repeat
  • 1179598 2023-009
    Material Weakness Repeat
  • 1179599 2023-009
    Material Weakness Repeat
  • 1179600 2023-010
    Material Weakness Repeat
  • 1179601 2023-011
    Material Weakness Repeat
  • 1179602 2023-011
    Material Weakness Repeat
  • 1179603 2023-012
    Material Weakness Repeat
  • 1179604 2023-012
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $2.36M
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $1.03M