Finding 1190843 (2025-002)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2026-03-27

AI Summary

  • Core Issue: The Authority's financial statements needed significant adjustments to meet GAAP due to limited staff resources.
  • Impacted Requirements: Internal controls over financial reporting were insufficient, leading to material misstatements.
  • Recommended Follow-Up: The Authority should enhance its internal controls to ensure compliance with accounting principles and prevent future issues.

Finding Text

Criteria: Generally, a system of internal control includes the ability to understand and prepare the Authority's financial statements in accordance with accounting principles generally accepted in the United States of America. Condition: Due to the limited size of the Authority's business staff and related resources available, material audit adjustments were required for the financial statements to be presented in accordance with accounting principles generally accepted in the United States of America. Questioned Costs: None. Effect: Audit adjustments were necessary to correct material misstatements noted during the audit for the financial statements to be in compliance with generally accepted accounting principles. Cause: Limited number of staff and hours available preclude the Authority from having proper resources to prepare all required adjusting journal entries necessary in preparing financial statements. Repeat Finding: This finding was reported in the prior year as finding 2024-002. Recommendation: The Authority should continue to review internal controls currently in place and improve internal controls over financial reporting so that financial statements are in compliance with generally accepted accounting principles. Views of Responsible Officials and Planned Corrective Actions: The Authority is in agreement with the finding. See separately issued Corrective Action Plan.

Corrective Action Plan

Recommendation: The Authority should continue to review internal controls currently in place and improve internal controls over financial reporting so that financial statements are in compliance with generally accepted accounting principles. Views of Responsible Officials and Planned Corrective Actions: The Authority will continue to review the accounting system and related financial reporting system to identify and correct material misstatements to the financial statements.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1190839 2025-001
    Material Weakness Repeat
  • 1190840 2025-002
    Material Weakness Repeat
  • 1190841 2025-003
    Material Weakness Repeat
  • 1190842 2025-001
    Material Weakness Repeat
  • 1190844 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $1.13M
14.872 PUBLIC HOUSING CAPITAL FUND $386,336
14.879 MAINSTREAM VOUCHERS $252,586
14.850 PUBLIC HOUSING OPERATING FUND $199,175