Finding Text
2024-004. Significant Audit Adjustments
Criteria:
The Authority should take the steps necessary to ensure accuracy and completeness of the financial statements.
Condition:
This audit required a number of significant adjusting journal entries. These entries were necessary because certain unadjusted general ledger accounts were incorrect and/or not recorded correctly.
Questioned Costs:
None noted.
Effect:
The PHA’s financial statements before any adjusting entries contained errors and/or were not properly recorded.
Cause:
This appears to be an oversight by the Authority.
Recommendation:
I recommend that the Authority exercise more care in processing and recording transactions and that more care be taken to ensure the completeness of financial reporting.
Management’s Response:
A new Executive Director was hired on 4-1-2025. He will be looking into the possibility of changing Fee Accountants. Although, prior E.D. had a rudimentary idea of accounting principles, he hired Lindsey to take care of our accounting as per HUD requirements. Another Fee Accountant paying more attention to detail, will be in our best interest.