Finding Text
Criteria: 2 CFR200.302 requires the auditee must maintain accurate, current and complete disclosure of the finacial results of each federal award. Condition: As of Sept 30, 2025 the Authority's HAP expense and RNP balance in VMS do not match the general ledger. Questioned Cost: $0. Context: N/A. Cause: The variance occured because management did not perform monthly reconciliations between the accounting software and VMS submissions. Additionally, there is a lack of independent supervisory review to ensure that all manual data entries into VMS accurately reflect the underlying trial balance. Effect: Failure to reconcile these records impairs financial accountability and can result in inaccurate financial reporting on the FDS. Furthermore, unreconciled differences may lead to over-funding or under-funding of HAP reserves by HUD, necessitating future funding adjustments. Repeat Finding: No. Recommendation: I recommend that management immediately prepare and doucment a comprehensive retroactive reconciliation between the general ledger and VMS for the year ended Sept 30, 2025. Moving forward, management should implement a mandatory monthly reconciliation checklist. Any discrepancies identified during the reconciliation must be investigated, resolved and documented prior to submitting the monthly VMS data to HUD. Views of Responsible officials: Management agrees with the finding. The accounting department will perform monthly reconciliations with the VMS and general ledger, and any discrepancies will be addressed immediately.