Finding 1927 (2022-101)

Criteria: Complete documentation of all transactions and activity should be retained and accounted for in the Authority’s accounting system. In addition, evidence of compliance with applicable federal requirements should be maintained. Condition: The Housing Authority was unable to provide sufficient, reliable information for the audit to be performed. Cause: The Housing Authority contracted with a separate management company to oversee administrative activities. The management company failed to provide all needed accounting information to the Authority’s third party accountant and failed to provide grant related information when requested. Effect: The Authority’s accounting is incomplete and the Authority is not in compliance with Uniform Guidance. Therefore, the audit of the Housing Authority was unable to be performed. Recommendations: The management company contract was terminated effective January 31, 2023. We recommend the Housing Authority review their processes and controls to ensure all activity is accounted for and documentation retained. We recommend that documentation of compliance activities be maintained for each federal award. We also recommend controls and processes be implemented to provide proper oversight and monitoring of the management of the Housing Authority.