Finding Text
S3800-011: Program Information
Federal Program: Supportive Housing for the Elderly - Section 202
Federal Agency: U.S. Department of Housing and Urban Development
Assistance Listing #: 14.157
Pass-through Entity: None
Federal Award Identification Number and Year: N/A
Type of Compliance Finding: N – Special Tests and Provisions
S3800-015: Type of Finding
Financial Statement and Federal Awards
S3800-016: Finding Resolution Status
Unresolved
S3800-017: Information on Universe Population Size
N/A
S3800-018: Sample Size Information
N/A
S3800-019: Identification of Repeat Finding and Finding Reference Number
2022-001
S3800-020: Criteria
The regulatory agreement requires that the Organization’s books and records are maintained in accordance with HUD guidelines and generally accepted accounting principles.
S3800-030: Statement of Condition
Several misstatements were identified by the auditor in the unaudited financial statements and accounts of the Organization.
S3800-032: Cause
The Organization lacks adequate internal controls to ensure that books and records are kept accurately and completely.
S3800-033: Effect or Potential Effect
The Organization was not in compliance with the regulatory agreement requirement to maintain accurate and complete books and accounts.
S3800-035: Auditor Non-Compliance Code
S – Internal Control Deficiencies
S3800-040: Questioned Costs
None S3800-045: Reporting Views of Responsible Officials
Management agrees with auditor’s finding.
S3800-050: Context
On the general ledger, accounts receivable, prepaid rents, and tenant security deposits did not tie to supporting documentation. The expenses were also not capitalized as per the capitalization policy. The Organization did not record the prior year audit adjusting entries as well due to which the unadjusted net assets did not roll forward correctly from the prior year.
S3800-080: Recommendation
The Auditor recommends the Organization follows their policies and procedures to ensure that accounting records are kept accurate and complete, and a responsible official should review and sign off on the monthly financial statements.
S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations
Concur
S3800-130: Response Indicator
Agree
S3800-140: Completion Date or Proposed Completion Date
December 31, 2023
S3800-150: Response
See Corrective Action Plan