Finding 517571 (2023-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2025-01-02
Audit: 335581
Auditor: Williams CPA LLC

AI Summary

  • Core Issue: The Company lacks reliable internal controls for preparing GAAP-compliant financial statements.
  • Impacted Requirements: Internal controls over financial reporting are insufficient, affecting compliance with accounting standards.
  • Recommended Follow-Up: Evaluate the need for internal resources to prepare financial statements instead of relying on auditors for this service.

Finding Text

Criteria – The inability to report financial data reliably in accordance with accounting principles generally accepted in the United States of (GAAP) is considered to be an internal control deficiency. Condition – The Company’s internal control over financial reporting extends through completion of the general ledger, but not to preparation of GAAP compliant financial statements and notes. As auditors, we were requested to draft the financial statements, and the accompanying notes to the financial statements. The auditors believe, in the auditors’ judgment, the Company does possess the necessary expertise to prepare the financial statements but has chosen to engage the auditors to perform this component service.

Categories

Internal Control / Segregation of Duties Reporting

Other Findings in this Audit

  • 517570 2023-001
    Significant Deficiency
  • 1094012 2023-001
    Significant Deficiency
  • 1094013 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects (section 223f) $1.10M
14.195 Section 8 Housing Assistance Payments Program $394,010