Finding 576627 (2022-005)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-10-05

AI Summary

  • Core Issue: GHURA's beginning equity balances for FY2022 do not match the audited ending balances from FY2021, indicating a lack of proper accounting.
  • Impacted Requirements: Compliance with HUD's special tests and provisions for rolling forward equity balances is not being met due to ineffective monitoring controls.
  • Recommended Follow-Up: Enforce stronger monitoring controls, reconcile current and prior year balances, and make necessary adjustments to ensure compliance.

Finding Text

Finding No.: 2022-005 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Cluster: Housing Voucher Cluster AL Numbers: 14.871, 14.879, 14.EHV, 14.HCC Area: Special Tests and Provisions - Rolling Forward Equity Balances Questioned Costs: $0 Criteria: In accordance with applicable special tests and provisions for rolling forward equity balances, the Annual Contributions Contract (ACC) requires Public Housing Agencies (PHAs) to properly account for program activity by properly maintaining account balances, by supporting a proper roll-forward of equity with records and accounting transactions, and by correcting detected errors. Condition: Beginning balances of equity, including any adjustments by GHURA, per the FY2022 Trial Balance (TB) did not agree with the audited ending balances per the FY2021 Single Audit Report (SAR). We noted variances, as follows: Cause: GHURA did not effectively enforce monitoring controls over compliance with special tests and provisions requirements for rolling forward equity balances. Effect: GHURA is in noncompliance with applicable special tests and provisions requirements for rolling forward equity balances. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Recommendation: Responsible personnel should enforce monitoring controls over compliance with applicable special tests and provisions requirements for rolling forward equity balances. Responsible personnel should reconcile the current year beginning balances with the prior year ending balances and should record adjustments, as necessary, to properly roll forward audited amounts. Views of Responsible Officials: Responsible accounting personnel will coordinate and prioritize with HUD to resolve the submission of its audited Fiscal Year 2020 and 2021 financial information as required in the Financial Assessment Sub-System (FASS-PH) so that the Authority can meet the reporting requirement.

Categories

HUD Housing Programs Subrecipient Monitoring Reporting Special Tests & Provisions

Other Findings in this Audit

  • 178 2022-001
    Material Weakness Repeat
  • 179 2022-001
    Material Weakness Repeat
  • 180 2022-002
    Significant Deficiency
  • 181 2022-002
    Significant Deficiency
  • 182 2022-003
    Significant Deficiency
  • 183 2022-003
    Significant Deficiency
  • 184 2022-004
    Material Weakness
  • 185 2022-005
    Material Weakness
  • 186 2022-004
    Material Weakness
  • 187 2022-005
    Material Weakness
  • 188 2022-004
    Material Weakness
  • 189 2022-005
    Material Weakness
  • 190 2022-004
    Material Weakness
  • 191 2022-005
    Material Weakness
  • 576620 2022-001
    Material Weakness Repeat
  • 576621 2022-001
    Material Weakness Repeat
  • 576622 2022-002
    Significant Deficiency
  • 576623 2022-002
    Significant Deficiency
  • 576624 2022-003
    Significant Deficiency
  • 576625 2022-003
    Significant Deficiency
  • 576626 2022-004
    Material Weakness
  • 576628 2022-004
    Material Weakness
  • 576629 2022-005
    Material Weakness
  • 576630 2022-004
    Material Weakness
  • 576631 2022-005
    Material Weakness
  • 576632 2022-004
    Material Weakness
  • 576633 2022-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $42.87M
14.248 Community Development Block Grants_section 108 Loan Guarantees $11.39M
14.850 Public and Indian Housing $5.67M
14.239 Home Investment Partnerships Program $4.42M
14.225 Community Development Block Grants/special Purpose Grants/insular Areas $3.54M
14.872 Public Housing Capital Fund $2.18M
14.U03 Emergency Housing Voucher $1.48M
14.157 Supportive Housing for the Elderly $867,010
14.267 Continuum of Care Program $759,419
14.U02 Public Housing Cares Act Funding $353,818
14.U04 Hcv Cares Act Funding $317,271
14.879 Mainstream Vouchers $218,269
14.U01 Central Office Cost Cares Act Funding $200,001
14.896 Family Self-Sufficiency Program $169,551
14.191 Multifamily Housing Service Coordinators $62,380
14.870 Resident Opportunity and Supportive Services - Service Coordinators $23,676
14.231 Emergency Solutions Grant Program $9,618