Finding Text
Material Audit Adjustments
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: Audit adjustments were proposed that were not identified by the Authority’s internal control system.
Cause: Management did not identify adjustments necessary to present the financial statements in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). Material audit adjustments were proposed to correct account balances.
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 Milford Housing Authority’s internal control.
Recommendation: The Milford Housing Authority will continue to improve communication of accounting transactions to both accounting personnel and those charged with oversight in order to decrease future proposed material audit adjustments.
Views of responsible officials and Planned Corrective Actions: The Milford Housing Authority will continue to improve communication of accounting transactions to both accounting personnel and those charged with oversight in order to decrease future proposed material audit adjustments.