Finding 496879 (2022-009)

Material Weakness Repeat Finding
Requirement
ABELN
Questioned Costs
-
Year
2022
Accepted
2024-09-16

AI Summary

  • Core Issue: The Authority failed to provide sufficient audit evidence for financial statements, impacting the ability to verify asset completeness and compliance with federal requirements.
  • Impacted Requirements: Compliance with Activities Allowed or Unallowed, Allowable Costs, Eligibility, Reporting, and Special Tests was not determinable due to lack of evidence.
  • Recommended Follow-Up: Management should enhance internal controls and ensure accurate record-keeping to support financial reporting and compliance in future audits.

Finding Text

Financial Reporting Finding Number: 2022-009 Assistance Listing Number and Title: AL # 14.871 - Section 8 Housing Choice Vouchers/Housing Voucher Cluster Federal Award Identification Number / Year: 2022 Federal Agency: U.S. Department of Housing and Urban Development Compliance Requirement: Activities Allowed or Unallowed and Allowable Costs/Cost Principles, Eligibility, Reporting, Special Tests and Provisions Pass-Through Entity: N/A Repeat Finding from Prior Audit? Yes Prior Audit Finding Number: 2021-007 Sound accounting practices require that when designing the public office’s system of internal control and the specific control activities, management should ensure adequate security of assets and records, and verify the existence and valuation of assets and liabilities and periodically reconcile them to the accounting records. As noted in Finding 2022-003, the Authority was unable to provide audit evidence to support the completeness of the amounts reported on the financial statements, as well as certain transactions, including fraudulent transactions. Due to lack of audit evidence, the necessary adjustments to the financial statements for the issues identified in Finding 2022-003 were undeterminable and we were unable to express an opinion on the Authority’s accompanying financial statements or determine the completeness of the amounts reported on the Schedule of Expenditures of Federal Awards. As a result, we were also unable to obtain audit evidence supporting the completeness of the populations for testing the program compliance requirements, and unable to determine whether the Authority complied with the Activities Allowed or Unallowed, Allowable Cost / Cost Principles, Eligibility, Reporting or Special Tests and Provisions compliance requirements. Therefore, we have issued a disclaimer of opinion on the Housing Voucher Cluster program compliance. See Finding 2022-003 in Section 2 above. Uniform Guidance also requires us to report this finding in this section of this Schedule.

Categories

Allowable Costs / Cost Principles HUD Housing Programs Reporting Special Tests & Provisions Subrecipient Monitoring Eligibility

Other Findings in this Audit

  • 496868 2022-004
    Material Weakness Repeat
  • 496869 2022-005
    Material Weakness
  • 496870 2022-006
    Material Weakness
  • 496871 2022-007
    Significant Deficiency
  • 496872 2022-008
    Material Weakness
  • 496873 2022-009
    Material Weakness Repeat
  • 496874 2022-004
    Material Weakness Repeat
  • 496875 2022-005
    Material Weakness
  • 496876 2022-006
    Material Weakness
  • 496877 2022-007
    Significant Deficiency
  • 496878 2022-008
    Material Weakness
  • 1073310 2022-004
    Material Weakness Repeat
  • 1073311 2022-005
    Material Weakness
  • 1073312 2022-006
    Material Weakness
  • 1073313 2022-007
    Significant Deficiency
  • 1073314 2022-008
    Material Weakness
  • 1073315 2022-009
    Material Weakness Repeat
  • 1073316 2022-004
    Material Weakness Repeat
  • 1073317 2022-005
    Material Weakness
  • 1073318 2022-006
    Material Weakness
  • 1073319 2022-007
    Significant Deficiency
  • 1073320 2022-008
    Material Weakness
  • 1073321 2022-009
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.850 Public and Indian Housing $449,832
14.238 Shelter Plus Care $259,563
14.871 Section 8 Housing Choice Vouchers $128,932
14.896 Family Self-Sufficiency Program $77,098
14.872 Public Housing Capital Fund $48,931