Finding Text
Preparation of the Financial Statements
Identification data: U.S. Department of Agriculture – Rural Rental Housing Loan, Assistance Listing No. 10.415.
Criteria: Professional Standards require the communication, in writing, to management and those charged with governance, of significant deficiencies and material weaknesses identified in an audit.
Condition: The Authority does not have an internal control system designed to provide for the preparation of the financial statements being audited.
Cause: The Authority’s accounting personnel do not have the expertise to prepare financial statements, including note disclosures, in accordance with generally accepted accounting principles. This is not an unusual deficiency for an entity of this size.
Effect or potential effect: The material weakness is a deficiency that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the Authority’s internal control.
Recommendation: The Milford Housing Authority’s management and Board of Commissioners must rely on its review and oversight authority to mitigate this inherent weakness in its internal control system.
Views of responsible officials and Planned Corrective Actions: The Milford Housing Authority's management and Board of Commissioners will rely on its review and oversight authority to mitigate this inherent weakness in its internal control system.