Finding Text
CONDITION: During 2022, procedures were not in place to ensure general ledger accounts were reconciled and reviewed on a timely basis. As a result, financial reports were not filed timely to third parties. CRITERIA: Systems and procedures should provide for reconciliation and review of general ledger accounts to occur on a timely basis to allow for accurate and timely preparation of financial reports. CAUSE: Systems and procedures were not in place to ensure general ledger accounts were reconciled and reports were filed timely to third parties. EFFECT: With no procedures in place to ensure timely reconciliation and review of general ledger accounts, there is potential that financial reports will be misstated and not filed timely to third parties. RECOMMENDATION: Systems and procedures should be established by management to allow for timely reconciliation and review of general ledger accounts. MANAGEMENT?S RESPONSE: Starting in late summer 2020, the large influx of federal COVID-19 relief funds and the overwhelming need for immediate rental and utility support led to unanticipated program growth but also strained internal back-office support capacity as CHN Housing Partners and Affiliates quickly responded to meet the demand for assistance. In response to this capacity issue, in 2021, CHN Housing Partners and Affiliates hired additional accounting personnel. In 2022, CHN Housing Partners and Affiliates experienced turnover in their accounting department and replacements were not hired until 2023. CHN Housing Partners and Affiliates will continue to analyze the needs of the accounting department to ensure the timely reconciliation of the general ledger and reporting to third parties.