FAC Explorer

Finding 1223011 (2025-005)

Material Weakness Repeat Finding
Requirement
A
Questioned Costs
-
Year
2025
Accepted
2026-07-07
Audit: 406556
Organization: Lee's Summit Housing Authority (MO)
Auditor: BARRALE RENSHAW CPAS AND ADVISORS LLC

AI Summary

  • Core Issue: The Housing Authority failed to provide essential documentation for audit review, impacting the integrity of financial statements.
  • Impacted Requirements: Key records such as invoices, tenant files, and the operating budget were missing, leading to unsupported financial reporting.
  • Recommended Follow-Up: Management should establish a system to ensure proper record-keeping and maintain all necessary source documents for financial transactions.

Finding Text

2025-005 Missing Documentation Criteria: Requested information should be readily available for audit examination. Accurate record keeping and reporting are crucial to the successful management of funded activities. Condition: The Authority was unable to provide a majority of the supporting documentation. This includes but is not limited to the following significant areas: • invoices • tenant files • operating budget The Authority was unable to produce the requested documents supporting Housing Authority financial statements. Questioned Cost: Cannot be determined, due to incomplete information. Effect: Housing Authority’s financial statements are not supported. Cause: Lack of prior management oversight. Recommendation: We recommend the Housing Authority’s management implement a system to maintain source documents and files that support the financial transactions.

Corrective Action Plan

Management has established standardized filing procedures for both electronic and hard-copy records, requiring supporting documentation for all reeipts, disbursements, journal entries, payroll transactions, procurement activities, grant expenditures, and bank reconiciliations. LSHA updated it's written records retention policy that complies with applicable HUD regulations, federal record retention requirements, and the LSHA's internal policies. Finance staff have received training on documentation standards, file maintenance, and record retention requirements.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1223009 2025-003
    Material Weakness Repeat
  • 1223010 2025-004
    Material Weakness Repeat
  • 1223012 2025-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $7.25M
14.872 PUBLIC HOUSING CAPITAL FUND $166,456
14.850 PUBLIC AND INDIAN HOUSING $164,255