Finding 1227791 (2024-003)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2026-08-25

AI Summary

  • Core Issue: There are significant internal control deficiencies affecting financial reporting, including missing documentation and inadequate policies.
  • Impacted Requirements: Management must ensure effective internal controls through proper documentation, timely reconciliations, and adherence to procurement policies.
  • Recommended Follow-Up: Address staffing changes and enhance training to improve compliance and monitoring of internal controls.

Finding Text

Finding No: 2024-003 Type: Internal control deficiency over financial reporting Condition: We identified a number of control deficiencies in the system of internal control: • Supporting documentation such as invoices, compensation agreements, approvals and reports were not available • Documented accounting policies and procedures were either missing or lacked sufficient detail. • Some significant account balances were not reconciled and/or adjusted. • Monitoring of adherence to established policies and procedures failed to prevent a contract of $71,200 from being entered into without compliance with the Authority’s procurement policy. Criteria: Management is responsible for maintaining effective internal controls through documented policies, appropriate authorization and review, adequate supporting documentation, timely reconciliations, and ongoing monitoring of significant transactions and account balances. Amount: Not determined Cause: There was staffing turnover and management changes throughout the year. Effect or Potential Effect: 1. Increased risk of material misstatement due to inadequate internal controls. 2. Increased fraud risk due to inadequate internal controls. Repeat Audit Finding: No

Corrective Action Plan

MCHA has created a documented policy and procedure for all significant accounting transactions which includes monitoring practices for financials and material account balances. Also included are procedures related to monthly and annual account reconciliation and filing of source documents.

Categories

Internal Control / Segregation of Duties Procurement, Suspension & Debarment Subrecipient Monitoring Reporting

Other Findings in this Audit

  • 1227789 2024-001
    Material Weakness Repeat
  • 1227790 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $1.28M
14.850 PUBLIC HOUSING OPERATING FUND $1.17M
10.427 RURAL RENTAL ASSISTANCE PAYMENTS $130,376
14.872 PUBLIC HOUSING CAPITAL FUND $29,543