Finding 384711 (2023-002)

Section Eight Housing Choice Voucher Program-CDFA#14.871 Finding 2023-002-Software Subscription Costs Not Properly Accounted For-Reporting Criteria and Condition For June 30, 2023 year-ends and forward, Government Auditing Standard (GASB) No. 96 applies. This requires a new accounting for subscription (lease)-based information technology arrangements (SBITAs). The Authority entered into a five-year agreement that started May 1, 2021 with a software company. Context The Authority did not adequately address this arrangement from an accounting standpoint. Effect Certain assets, liabilities, and expenses do not properly reflect the subscription costs associated with the software. Cause Apparent oversight. Questioned Costs None Recommendation Evaluations of the applicable assets, liabilities, and expenses related to this should be properly evaluated in the future, especially at the next fiscal year end. View of Responsible Official We will comply with the auditor’s recommendation.