Finding 612695 (2022-001)

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Requirement
P
Questioned Costs
-
Year
2022
Accepted
2022-12-15

AI Summary

  • Core Issue: Construction in progress was not recorded in the correct period, leading to inaccurate financial statements.
  • Impacted Requirements: All property and equipment must be recorded timely to reflect true asset and liability values.
  • Recommended Follow-Up: Ensure ongoing adherence to new procedures for timely recording of all project activities.

Finding Text

Finding No. 2022-001: Section 8 Housing Assistance Payments Program, CFDA 14.195 Finding Resolution Status: Resolved. Information on Universe Population Size: Fixed assets. Sample Size Information: Fixed assets. Identification of Repeat Finding and Finding Reference Number: No. Criteria: All property and equipment and construction in progress additions should be recorded in the appropriate period. Statement of Condition: Construction in progress was not recorded on the books of the Project in the appropriate period. Cause: Management did not timely record the construction in progress when work was performed. Effect or Potential Effect: Understatement of total assets and total liabilities on the prior year financial statements. Auditor Non-Compliance Code: Z ? Other Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor?s recommendations will be adopted. Recommendation: The Project should ensure all activity of the Project is timely and accurately recorded on the books. Response Indicator: Agree. Completion Date: 02/16/2022 Response: Management implemented new procedures to ensure the proper and timely recording of CIP transactions.

Categories

HUD Housing Programs Reporting Equipment & Real Property Management

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.195 Section 8 Housing Assistance Payments Program $926,159
14.157 Supportive Housing for the Elderly $894,486
14.164 Section 201 Flexible Subsidy Loan Program $370,767