Finding Text
Finding Number: 2021-007
Assistance Listing Number and Title: AL # 14.871 - Section 8 Housing Choice
Vouchers/Housing Voucher Cluster Federal Award Identification Number / Year: 2021
Federal Agency: U.S. Department of Housing and Urban Development
Compliance Requirements: Activities Allowed or Unallowed, Allowable Costs/Cost Principles,
Eligibility
Reporting
Special Tests & Provisions
Pass-Through Entity: N/A
Repeat Finding from Prior Audit? No
Material Weakness
Sound accounting practices require that when designing the public office’s system of internal control and the specific control activities, management should ensure adequate security of assets and records, and verify the existence and valuation of assets and liabilities and periodically reconcile them to the accounting records. As noted in Finding 2021-004, the Authority was unable to provide audit evidence to support the completeness of the amounts reported on the financial statements, bank reconciliation differences, as well as certain transactions, including fraudulent transactions. Due to lack of audit evidence, the necessary adjustments to the financial statements for the issue identified in Finding 2021-004 were undeterminable and we were unable to express an opinion on the Authority’s accompanying financial statements or determine the completeness of the amounts reported on the Schedule of Expenditures of Federal Awards. As a result, we were also unable to obtain audit evidence supporting the completeness of the populations for testing the program compliance requirements, and unable to determine whether the Authority complied with the Activities Allowed or Unallowed, Allowable Cost / Cost Principles, Eligibility, Reporting or Special Tests and Provisions compliance requirements. Therefore, we have issued a disclaimer of opinion on the Housing Voucher Cluster program compliance.
See Finding 2021-004 in Section 2 above. Government Auditing Standards also requires us to report this finding in this section of this Schedule.