Finding 1181855 (2025-002)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2026-03-23
Audit: 393140
Auditor: KERBERROSE SC

AI Summary

  • Core Issue: The Authority could not provide a proper schedule of expenditures for federal awards due to limited accounting expertise.
  • Impacted Requirements: The lack of a detailed schedule affects compliance with federal funding regulations.
  • Recommended Follow-Up: Keep utilizing external auditors for preparation and ensure thorough management review for accuracy.

Finding Text

Criteria: The Authority should prepare the schedule of expenditures of federal awards. Condition: The Authority was unable to provide us with a schedule of expenditures of federal awards with the appropriate allocation of funds by ALN and funding source. Cause: Due to the small size of the Authority and the limited number of accounting personnel, no individual is skilled in the preparation of the schedule of expenditures of federal awards. Effect: During the course of our audit, we prepared the schedule of expenditure of federal awards; however, management of the Authority thoroughly reviewed it and accepted responsibility for its completeness and accuracy. Recommendation: Continue to use the services of the external audit firm to prepare the Authority’s schedule of expenditures of federal awards in accordance with generally accepted accounting principles. Management's Response: The Authority agrees with the finding. It will continue to use its external auditors to prepare the schedule of expenditures of federal awards. Management will continue to thoroughly review and accept responsibility for the completeness and accuracy of the schedule of expenditures of federal awards.

Corrective Action Plan

The Authority’s Board of Commissioners and management will continue to rely on the use of their outside auditors to prepare the schedule of expenditures of federal awards that were presented in accordance with generally accepted accounting principles. Management will assign a person within the Authority with the skills, knowledge and expertise to review and approve the schedule of expenditures of federal awards.

Categories

Allowable Costs / Cost Principles Reporting

Other Findings in this Audit

  • 1181850 2025-001
    Material Weakness Repeat
  • 1181851 2025-002
    Material Weakness Repeat
  • 1181852 2025-001
    Material Weakness Repeat
  • 1181853 2025-002
    Material Weakness Repeat
  • 1181854 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $1.41M
10.415 RURAL RENTAL HOUSING LOANS $91,392
10.427 RURAL RENTAL ASSISTANCE PAYMENTS $59,119