Finding 496209 (2023-004)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-09-09
Audit: 319145
Auditor: M Group LLP

AI Summary

  • Core Issue: The Corporation failed to record credit card charges and reconcile the payable account, leading to non-compliance with Uniform Guidance.
  • Impacted Requirements: GAAP and Uniform Guidance require accurate accounting for expenses and liabilities to ensure financial statements are correct.
  • Recommended Follow-Up: Management should enhance oversight and monitor compliance with expense report policies to ensure proper recording of expenditures.

Finding Text

Finding #2023-004: Section 8 Housing Assistance Payments Program Assistance Listing 14.195 and Section 221(d)(4) Insured Loan Program Assistance Listing 14.155 Condition: The Corporation did not record credit card charges or reconcile the credit card payable account to the credit card statement during 2023. Criteria: Under GAAP and Uniform Guidance compliance requirements the Corporation is required to account for expenses and liabilities to ensure the financial statements are materially stated and expenses are in compliance with Uniform Guidance requirements. Questioned Costs: $216,657 Effect: The Corporation is not in compliance with Uniform Guidance. Cause: The Corporation has expense report procedures in place, however, these procedures have not been followed. Expense reports and receipts have not been provided or approved by management resulting in the understatement of expenses and liabilities. Repeat Finding: No Recommendation: Management needs to provide oversight and monthly monitoring to ensure employees follow the expense report policies and expenses are proper expenditures of the Corporation and properly recorded in the financial statements. Management’s Views: For unsubmitted expense reports, management will record the proper accrual for expenses.

Categories

Questioned Costs HUD Housing Programs Subrecipient Monitoring Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 496191 2023-001
    Material Weakness
  • 496192 2023-002
    Material Weakness
  • 496193 2023-003
    Significant Deficiency
  • 496194 2023-003
    Significant Deficiency
  • 496195 2023-003
    Significant Deficiency
  • 496196 2023-003
    Significant Deficiency
  • 496197 2023-003
    Significant Deficiency
  • 496198 2023-003
    Significant Deficiency
  • 496199 2023-003
    Significant Deficiency
  • 496200 2023-003
    Significant Deficiency
  • 496201 2023-003
    Significant Deficiency
  • 496202 2023-003
    Significant Deficiency
  • 496203 2023-005
    Significant Deficiency
  • 496204 2023-005
    Material Weakness
  • 496205 2023-004
    Significant Deficiency
  • 496206 2023-004
    Significant Deficiency
  • 496207 2023-004
    Significant Deficiency
  • 496208 2023-004
    Significant Deficiency
  • 1072633 2023-001
    Material Weakness
  • 1072634 2023-002
    Material Weakness
  • 1072635 2023-003
    Significant Deficiency
  • 1072636 2023-003
    Significant Deficiency
  • 1072637 2023-003
    Significant Deficiency
  • 1072638 2023-003
    Significant Deficiency
  • 1072639 2023-003
    Significant Deficiency
  • 1072640 2023-003
    Significant Deficiency
  • 1072641 2023-003
    Significant Deficiency
  • 1072642 2023-003
    Significant Deficiency
  • 1072643 2023-003
    Significant Deficiency
  • 1072644 2023-003
    Significant Deficiency
  • 1072645 2023-005
    Significant Deficiency
  • 1072646 2023-005
    Material Weakness
  • 1072647 2023-004
    Significant Deficiency
  • 1072648 2023-004
    Significant Deficiency
  • 1072649 2023-004
    Significant Deficiency
  • 1072650 2023-004
    Significant Deficiency
  • 1072651 2023-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $11.82M
14.239 Home Investment Partnerships Program $3.44M
14.195 Section 8 Housing Assistance Payments Program $603,958