Finding 30729 (2022-001)

FINDING No. 2022-001: Section 202 Supportive Housing for the Elderly, CFDA 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: Notes payable. Sample Size Information: Notes payable. Identification of Repeat Finding and Finding Reference Number: No. Criteria: The financial records of the Project should reflect all financial activity occurring during the audit period. Statement of Condition: The note payable was forgiven during the audit period and was not reflected in the accounting records of the Project. Cause: Management was unaware of the note payable being forgiven during the audit period. Effect or Potential Effect: An overstatement of liabilities and an understatement of revenue. Auditor Non-Compliance Code: Z ? Other. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations have been adopted. Recommendation: Management should monitor the notes payable on the financial records of the Project and verify with the note issuer the status of the note payable on a regular basis. Response Indicator: Agree. Completion Date: 7/1/2022 Response: Accounting has established a policy where all long term liabilities will be monitored and confirmed on an annual basis.