Finding Text
Finding reference number: #2023-006
Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155, Section 8 Housing Assistance Payments Program, Assistance Listing No. 14.195
Identification numbers
See SEFA
Auditor non-compliance code: P - Other
Finding resolution status: Cleared
Universe population size: The universe population size is not applicable to the finding. Finding reference number: #2023-006 (continued)
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Repeat Finding: No
Statement of Condition #2023-006: The Corporation's accounting books and records as submitted for audit included certain accounts which were not presented in accordance with accounting standards generally accepted in the United States of America ("GAAP"). As a result management was required to provide audit adjustments to present the March 31, 2023 financial statements in accordance with GAAP.
Criteria: Pursuant to HUD and OMB requirements, the books and records of the Corporation are required to be kept in accordance with the requirements of HUD and OMB, which includes adequate design and monitoring of controls to safeguard the Corporation's assets, including: maintenance of books and records, completeness and accuracy of books and records, and an auditable paper trail.
Effect: The Corporation was not in compliance with certain HUD regulations. Audit adjustments provided by management were required to present the March 31, 2023 financial statements in accordance with GAAP.
Cause: During the development of Rhonda's Place, one loan and one grant were received which were not accounted for in accordance with GAAP.
Recommendation: The Agent should maintain a comprehensive set of accounting books and records in accordance with GAAP.
Completion Date: March 31, 2023
Management Response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will ensure that the Agent will maintain a comprehensive set of accounting books and records in accordance with GAAP.