Finding 610633 (2022-001)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-09-18
Audit: 28604
Organization: Coastal Affordable Housing (ME)
Auditor: Otis Atwell

AI Summary

  • Core Issue: Significant adjustments were needed for accounts receivable and operating expenses to align with accounting standards.
  • Impacted Requirements: Management must maintain accurate accounting records as per generally accepted accounting principles.
  • Recommended Follow-Up: Implement training and review processes for financial closing procedures by December 31, 2023, to prevent future errors.

Finding Text

Finding No. 2022-001: Questioned Costs: N/A. Information on Universe and Population Size: N/A Sample Size Information: N/A Noncompliance Information: No instances of noncompliance identified.Statement of Condition: A significant audit adjustment related to accounts receivable and operating expense was needed in order to present the consolidated financial statements in accordance with generally accepted accounting principles. Criteria: Management is responsible for maintaining its accounting records in accordance with generally accepted accounting principles. Cause: Inadequate controls over financial closing procedures. Effect or Potential Affect: As a result of the condition, the Organization?s accounting records were initially misstated by amounts significant to the consolidated financial statements. Recommendations: We recommend that control systems are put in place to ensure there is proper training and review over monthly and annual financial closing procedures to eliminate errors in the future. Reporting Views of Responsible Officials and Planned Corrective Action: While policies and procedures were fundamentally sound, deficiencies existed in the oversight and review of significant transactions over accounts receivable and operating expenses during financial closing procedures. Therefore, the following action will be implemented by December 31, 2023: ? Conduct internal training over monthly and annual financial closing procedures.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 34189 2022-001
    Significant Deficiency Repeat
  • 34190 2022-001
    Significant Deficiency Repeat
  • 34191 2022-001
    Significant Deficiency Repeat
  • 610631 2022-001
    Significant Deficiency Repeat
  • 610632 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
10.415 Rural Rental Housing Loans $1.67M
10.415 Rural Rental Housing Loans - Rental Assistance $215,264
10.415 Rural Rental Housing Loans - Interest Credit Subsidy $102,250