Finding Text
Criteria:As required by the Budget and Fiscal Control Act and the terms of the annual contributions contract with HUD, the Authority is required to have an annual budget for all enterprise funds.Condition:For the year ended September 30, 2024 the Authority was unable to locate an annual budget in the accounting records.Effect:Expenditures were not controlled as they were not budget approved.Cause:Lack of oversight by management and the Board.Recommendation:The Authority should adopt an annual budget prior to each fiscal year.Views of Responsible Officials and Planned Corrective Actions:We agree with the auditors’ comment, and the following action will be taken to improve the situation. This situation was created when the previous administration removed all records and were not made available to the auditors after several requests. KMHA has taken the following actions.A budget for FYE 9/30/25 was approved by the Board in the October 2024 meeting.