Finding Text
Findings reference number: 2024-002 - Title and AL Number of Federal Program: Mortgage Insurance for Purchase or Refinancing of Existing Multifamily Housing Projects (Sec 223(f)), AL 14.155 - Type of finding: Internal control - Resolution Status: In process. - Population size: N/A - Sample size: N/A - Repeat finding: No - Criteria: Fixed assets recorded on the books should be accurate and complete. - Condition: The property suffered significant damages from two weather events during the year ended December 31, 2024, resulting in repairs and replacement expenditure. The fixed assets replaced were not written off. - Cause: The contract accountant who prepares the in-house financial statements and the detail fixed assets register overlooked disposing of the fixed assets that had been replaced. - Effect: Audit adjustments of significant amounts had to be made to correct the situation. - Noncompliance code: S - Internal control deficiencies - Questioned costs: None - Reporting views of officials: Management agrees with the finding and will make every effort to have the in-house financial statements completed at least quarterly. - Contract number: 114-11392 - Context: This was noted while performing the audit. - Recommendation: Procedures should be implemented to ensure that fixed assets recorded in the books of account actually exist. - Auditors' summary of auditee's comments: They are in agreement. - Completion date: 12/31/2025 - Response: In the future, management will implement procedures to reconcile fixed assets as reported on the books with the actual assets on the property.