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.