Finding 470 (2022-003)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-10-23

AI Summary

  • Core Issue: The Authority failed to maintain an accurate schedule of expenditures for federal, state, and city awards.
  • Impacted Requirements: This affects compliance with regulations requiring accurate financial reporting.
  • Recommended Follow-Up: Implement a review process to ensure proper coding of grants in the accounting system for accurate reporting.

Finding Text

Criteria The Authority is required to maintain an accurate schedule of expenditures of federal, state and city awards. Condition The Authority did not maintain an accurate schedule of expenditures of federal, state and city awards. Cause The Finance Department staffing composition at the Authority has gone through significant changes as a result of retirement(s) and/or senior staff leaving. Poor succession planning and transition of responsibilities have resulted in inaccurate information being reported on the schedule of expenditures of federal, state and city awards as no one individual has taken ownership or responsibility over its preparation. Effect The schedule of expenditures of federal, state and city awards was not completed accurately, which required various adjustments. Recommendation We recommend that the Authority implement procedures to ensure there is an adequate review process in place to ensure grants are coded properly within the accounting system which will lead to accurate completion of the schedule of expenditures of federal, state and city awards.

Categories

Reporting

Other Findings in this Audit

  • 468 2022-003
    Material Weakness Repeat
  • 469 2022-004
    Material Weakness Repeat
  • 471 2022-004
    Material Weakness Repeat
  • 576910 2022-003
    Material Weakness Repeat
  • 576911 2022-004
    Material Weakness Repeat
  • 576912 2022-003
    Material Weakness Repeat
  • 576913 2022-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.239 Home Investment Partnerships Program $2.77M
14.218 Community Development Block Grants/entitlement Grants $2.33M