Finding 290 (2022-002)

2022-002 Project-Based Budgeting and Accounting U.S Department of Housing and Urban Development 14.850 Public and Indian Housing Condition: During review of the Authority s budgeting process, it was noted that the Board did not approve the 2022 fiscal year budget until March 2022. The Authority is required to complete and approve the budget before the start of the fiscal year. Criteria: PHAs implementing asset management shall develop and maintain a system of budgeting and accounting for each project in a manner that allows for analysis of actual revenues and expenses. Prior to the beginning of the fiscal year, a PHA is required to prepare an operating budget and the PHA s Board of Commissioners is required to review and approve the budget by resolution. Cause: The Authority was transitioning between accountant s during the budgetary process. Effect: The Authority was not in compliance with the project-based budgeting and accounting requirement. Questioned Costs: $0 Recommendation: We recommend that the Authority establish internal control procedures over the budgeting process sufficient to ensure that the budget is prepared and approved timely. PHA Response and Corrective Action Plan: See corrective action plan.