Finding 555626 (2024-001)

Schedule reference number 2024-001. Title and AL Number of Federal Program: Supportive Housing for Persons with Disabilities (Section 811), AL 14.181 -Type of finding: Financial statement -Resolution status: In process -Population size: N/A -Sample size: N/A -Repeat finding: No. -Criteria: All expenses for the year ended December 31, 2024 should be recorded to the books. -Condition: Management failed to accrue legal fees pertaining to the year ended December 31, 2024 for which the invoice was dated in November 2024 but not received or paid until January 2025. -Cause: Management oversight. -Effect: The Project's expenses and payables for the year ended December 31, 2024 were understated. -Noncompliance code: S. Internal control deficiency -Questioned cost: $12,491. -Reporting views of officials: Management agrees with the finding. -Context: This was noted while performing certain procedures to search for unrecorded liabilities during the audit. -Recommendation: Management should review invoices received and payments done in the subsequent period and accrue the expenses relating to the prior period. -Auditors' summary of auditee's comments: They are in agreement. -Completion date: 12/31/25 -Response: Governance agrees with the comments and will ensure that all transactions are properly recorded.