Finding Text
Finding 2022-002 Condition: The Corporation reported vacancies to the USDA even though there were tenants that occupied those rooms. Criteria: The Corporation should properly report tenant information to the USDA. Cause: The Corporation does not have an internal control system designed to ensure that vacancies are appropriately documented and maintained. Effect: Lack of internal controls over vacancy reporting resulted in a loss of revenue of approximately $1,818. Management fees are to be calculated using the number of occupied rooms. Due to the incorrect vacancies, management fees may not have been calculated correctly. Recommendation: We recommend the Corporation create policies and procedures to ensure that all tenants are accurately reported to the USDA. Repeat Finding: Yes. Views of Responsible Officials and Planned Corrective Actions: We agree with the auditor and will take under advisement.