Finding Text
2022-005. Significant Audit Adjustments Criteria: The Authority should take the steps necessary to ensure accuracy and completeness of the financial statements. Condition: This audit required a number of significant adjusting journal entries. These entries were necessary because certain unadjusted general ledger accounts were incorrect and/or not recorded correctly. Questioned Costs: None noted. Effect: The PHA?s financial statements before any adjusting entries contained errors and/or were not properly recorded. Cause: This appears to be an oversight by the Authority. Recommendation: I recommend that the Authority exercise more care in processing and recording transactions and that more care be taken to ensure the completeness of financial reporting. Management?s Response: We cannot say whether this is a problem caused by the Dodge City Housing Authority or if it lies with our fee accountant. At the end of every fiscal year, we have a close-out process that includes a questionnaire from our fee accountant on several expense areas (compensated absences, allowance for doubtful accounts, end of year investment balances, inventory, etc.). Apparently, they did not use that information in our end of year accounting. This resulted in our auditor having to make many end of the year adjusting journal entries for our Agency. I had all of the information in our budget file, and it looked as though I had sent it to our fee accountant, however, they apparently did not receive it and use it to complete their end of year accounting for us. We will be sure to follow up with our fee accountant from this point forward to make sure they receive what we send at the end of the year.