Finding 480255 (2023-003)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-08-01

AI Summary

  • Core Issue: The Authority failed to provide essential documentation for audit review, impacting the reliability of financial statements.
  • Impacted Requirements: Key records like invoices, tenant files, and bank statements were missing, hindering accurate financial reporting.
  • Recommended Follow-Up: Management should establish a system to ensure proper maintenance of all supporting documents for financial transactions.

Finding Text

2023-003 Missing Documentation Criteria: Requested information should be readily available for audit examination. Accurate record keeping and reporting are crucial to the successful management of funded activities. Condition: The Authority was unable to provide a majority of the supporting documentation. This includes but is not limited to the following significant areas: • invoices • tenant files • bank statements • payroll registers • operating budget The Authority was unable to produce the requested documents supporting Housing Authority financial statements. Questioned Cost: Cannot be determined, due to incomplete information. Effect: Housing Authority’s financial statements are not supported. Cause: Lack of prior management oversight. Recommendation: We recommend the Housing Authority’s management implement a system to maintain source documents and files that support the financial transactions.

Corrective Action Plan

Due to shredding and poor record keeping by the agency's former Administration, records for the period of October 2022- September 2023 some records could not be provided as none of the previous staff that worked during that tenue was still employed with LSHA. LSHA has established internal processes that include electronic filing of invoices, bank statements, and payroll registers. LSHA is also analyzing internal processes with the Fee Accountant to ensure budget compliance. LSHA is moving in the direction of changing its' Fee Accountant by July 1, 2024, as it appears that there is a failure in that department as well when it comes to LSHA's electronic and financial controls. The current Executive Director and staff continue to work diligently in retrieving and recreating records and documents, while also ensuring that current documents are reconciled and uploaded properly.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 480253 2023-001
    Material Weakness
  • 480254 2023-002
    Material Weakness
  • 1056695 2023-001
    Material Weakness
  • 1056696 2023-002
    Material Weakness
  • 1056697 2023-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $5.63M
14.872 Public Housing Capital Fund $312,774
14.850 Public and Indian Housing $155,825