Finding 35196 (2022-005)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-05-22

AI Summary

  • Core Issue: The financial statements had significant errors due to unadjusted general ledger accounts.
  • Impacted Requirements: The Authority must ensure the accuracy and completeness of financial reporting.
  • Recommended Follow-Up: Improve transaction processing and confirm that the fee accountant receives all necessary information for year-end accounting.

Finding Text

2022-005. Significant Audit Adjustments Criteria: The Authority should take the steps necessary to ensure accuracy and completeness of the financial statements. Condition: This audit required a number of significant adjusting journal entries. These entries were necessary because certain unadjusted general ledger accounts were incorrect and/or not recorded correctly. Questioned Costs: None noted. Effect: The PHA?s financial statements before any adjusting entries contained errors and/or were not properly recorded. Cause: This appears to be an oversight by the Authority. Recommendation: I recommend that the Authority exercise more care in processing and recording transactions and that more care be taken to ensure the completeness of financial reporting. Management?s Response: We cannot say whether this is a problem caused by the Dodge City Housing Authority or if it lies with our fee accountant. At the end of every fiscal year, we have a close-out process that includes a questionnaire from our fee accountant on several expense areas (compensated absences, allowance for doubtful accounts, end of year investment balances, inventory, etc.). Apparently, they did not use that information in our end of year accounting. This resulted in our auditor having to make many end of the year adjusting journal entries for our Agency. I had all of the information in our budget file, and it looked as though I had sent it to our fee accountant, however, they apparently did not receive it and use it to complete their end of year accounting for us. We will be sure to follow up with our fee accountant from this point forward to make sure they receive what we send at the end of the year.

Corrective Action Plan

2022-005. Significant Audit Adjustments Corrective action planned: At the end of every fiscal year from this point forward the Executive Director will make certain that our fee accountant has received all information sent to them. Contact person: Matt Brady, Executive Director. Anticipated completion date: September 30, 2023

Categories

HUD Housing Programs Reporting Equipment & Real Property Management Internal Control / Segregation of Duties

Other Findings in this Audit

  • 35197 2022-006
    Significant Deficiency
  • 611638 2022-005
    Significant Deficiency
  • 611639 2022-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.850 Public and Indian Housing $19,864
14.871 Section 8 Housing Choice Vouchers $13,688
14.872 Public Housing Capital Fund $6,884