Finding Text
Criteria - The Authority must prepare a SEFA for the period covered by the Authority’s financial statements which must include the total Federal awards expended by individual Assistance Listing number as determined in accordance with §200.502 Basis for determining Federal awards expended.
Condition - The Authority did not include $114,639 related to the Emergency Housing Vouchers (Assistance Listing No. 14.871) grant and $718,830 related to the Project-Based Rental Assistance (Assistance Listing No. 14.195) grant in its SEFA for the fiscal year ended March 31, 2023.
Cause - The Authority’s year-end closing and financial reporting procedures were not sufficient to ensure accurate financial reporting.
Effect - The total expenditures of federal awards were understated by $888,252.
Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample.
Questioned Costs - None identified.
Repeat Finding - This is not a repeat finding.
Recommendation - We recommend verifying the total amount of expenditures on an individual grant basis per review of the general ledger account balances prior to submitting the unaudited Financial Data Schedule (FDS).
Management’s Response - (a) Comments on the finding and recommendation - The Authority agrees with the finding. The Authority also agrees with the recommendations, please see below for action taken.
(b) Action taken - The Authority will continue to utilize Marcum LLP to provide ongoing fee accounting services to incorporate the recommendations listed above on a monthly basis. A comprehensive year-end checklist will continue to be utilized to ensure all general ledger activity is accurate to the underlying support.
(c) Planned implementation date of corrective action - Completed by March 31, 2025.