Finding 394616 (2023-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-04-25

AI Summary

  • Core Issue: Significant general ledger accounts were not reconciled for the year ended December 31, 2023, due to a management transition.
  • Impacted Requirements: Internal controls were deficient, leading to multiple audit adjusting journal entries.
  • Recommended Follow-Up: The new management company must ensure monthly reconciliations of all significant accounts moving forward.

Finding Text

Schedule reference number 2023-001. Title and AL Number of Federal Program: Supportive Housing for the Elderly, AL 14.157 Type of finding: Financial statement Resolution status: In process Population size: N/A Sample size: N/A Repeat finding: No. Criteria: All significant general ledger accounts were not reconciled for the year ended December 31, 2023. Condition: During the audit, several adjusting journal entries were recorded to reconcile certain accounts to underlying support. Cause: The Project had a change in the management company in December 2023 and during the transition, some accounts were not reconciled. Effect: Several audit adjusting journal entries were recorded. Noncompliance code: S. Internal control deficiency Questioned cost: None Reporting views of officials: Management agrees with the finding. Context: This was noted while performing certain procedures on various general ledger accounts during the audit. Recommendation: The new management company should ensure that all significant accounts are reconciled on a monthly basis. Auditors' summary of auditee's comments: They are in agreement. Completion date: 12/31/24 Response: The new management company agrees with the comments and will ensure that in the future, all transactions are properly recorded and all accounts are reconciled on a monthly basis.

Corrective Action Plan

All significant general ledger accounts were not reconciled for the year ended December 31, 2023. Response: The Project had a change in the management company in December 2023 and during the transition, some accounts were not reconciled. In the future, the new management company will ensure all significant accounts are reconciled timely.

Categories

Internal Control / Segregation of Duties Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $226,679