Core Issue: The Projects lack proper documentation for fixed assets recorded on financial statements.
Impacted Requirements: Non-compliance with RD regulations requiring proof of original purchase price or cost for assets.
Recommended Follow-Up: Continue efforts to locate documentation supporting the original purchase price of the apartment buildings and land.
Finding Text
FEDERAL AWARDS FINDING Year Ended December 31, 2022 Finding 2022-002 Federal assistance listing number and name: 10.415 Rural Rent Housing Loans Awards numbers and years: 2022 Federal agency: United States Department of Agriculture Compliance Requirement: Equipment and Real Property Management Questioned Costs: None Criteria: Assets recorded on the financial statements should be supported by documentation showing the original cost or purchase price. Condition and Context: The Projects did not maintain adequate documentation to support the fixed assets recorded on the financial statements. Effect: The Projects are not in compliance with RD regulations or standards which require that assets recorded on the financial statements be supported with documentation showing the original purchase price or cost. Cause: The City of Poplar Housing Authority did not maintain adequate records to support the purchase price of the apartment buildings or the land on which the apartment buildings were built. Recommendation: We recommend that the Projects continue to look for the documentation which shows the original purchase price or cost of the Projects.
Categories
Equipment & Real Property ManagementProcurement, Suspension & DebarmentMatching / Level of Effort / Earmarking