Finding 559945 (2023-007)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-05-08

AI Summary

  • Core Issue: No documentation was available for utility expenses from July 1, 2001 – June 30, 2022, affecting subsidy calculations.
  • Impacted Requirements: The Authority must retain documentation to ensure accurate utility expense levels for operating fund subsidies.
  • Recommended Follow-Up: Implement a system to maintain all utility payment records and track consumption to prevent future issues.

Finding Text

Criteria:The Authority is required to retain documentation used in the calculation of the utility expense level that is used to calculate the utility portion of the operating fund subsidy.Condition:For the funding period 2023, no documentation was available to test the actual consumption of the utilities for the applicable period (July 1, 2001 – June 30, 2022).Effect:Lack of proper documentation could lead to an improper operating fund subsidy calculation. Cause:Lack of oversight by management and the Board.Recommendation:Documentation should be maintained for all utility payments made to ensure that the proper utility expense level for the operating fund subsidy is correct.Views of Responsible Officials and Planned Corrective Actions:We agree with the auditors' comments, and the following action will be taken to improve the situation. This situation was created when the previous administration failed to maintain proper records on utility consumption.Currently, the Authority is tracking all utility consumption for future OpFund application.

Corrective Action Plan

Name of Contact Person: Veronica Williams, Interim Executive DirectorCorrective Action: Currently, the Authority is tracking all utility consumption for future OpFund application.Proposed Completion Date: Immediately

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

  • 559939 2023-001
    Material Weakness
  • 559940 2023-002
    Material Weakness
  • 559941 2023-003
    Material Weakness
  • 559942 2023-004
    Material Weakness
  • 559943 2023-005
    Material Weakness
  • 559944 2023-006
    Material Weakness
  • 1136381 2023-001
    Material Weakness
  • 1136382 2023-002
    Material Weakness
  • 1136383 2023-003
    Material Weakness
  • 1136384 2023-004
    Material Weakness
  • 1136385 2023-005
    Material Weakness
  • 1136386 2023-006
    Material Weakness
  • 1136387 2023-007
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.872 Public Housing Capital Fund $1.59M
14.850 Public Housing Operating Fund $566,741