Finding Text
Criteria: Per Financial Operations and Accounting Procedures for Insured Handbook 4370.20, Chapter 2. Maintenance of Books and Account 2-3, “Book and accounts must be complete and accurate.”
Condition: The Project did not provide the Resident Balance By Fiscal Period-December 31, 2021 to reconcile to the 1130 Tenant Receivable, 1130 Accounts Receivable HUD, 2210 Prepaid Revenue, and 2191 Tenant Deposit Held in Trust (Contra). The Resident Balance by Fiscal Period is the subsidiary ledger for the accounts noted.
Criteria: Per Financial Operations and Accounting Procedures for Insured Handbook 4370.20, Chapter 2. Maintenance of Books and Account 2-3, “Book and accounts must be complete and accurate.”
Effect: The Project accounts noted were not reconciled to Resident Balance By Fiscal Period as of December 31, 2021 to determine the proper account balances.
Recommendation: We recommend that the Management Agent establish policy and procedures to reconcile the Resident Balance by Fiscal Period on a monthly basis to the following accounts to determine a complete and accurate account balance:
5. 1130 Tenant Accounts Receivable.
6. 1135 Accounts Receivable-HUD.
7. 2210 Prepaid Revenue.
8. 2191 Tenant Deposit Held in Trust (Contra).
Views of Responsible Officials and Corrective Action Plan: No disagreements with the audit finding.