Finding Text
Criteria: Per Financial Operations and Accounting Procedures for Insured Handbook 4370.20, Chapter 2. Maintenance of Books and Account 2-3, “Book and accounts must be complete and accurate.”
Condition: The Project is not reconciling Resident Balance by Fiscal Period -December 31, 2021 to QuickBooks to determine certain account balances.
The Resident Balance by Fiscal Period is the subsidiary ledger for the accounts noted.
Cause: The Project did not utilize the rent roll system to reconcile tenants' activity to the QuickBooks accounting system.
Effect: The Project accounts noted were not reconciled to Resident Balance By Fiscal Period as of December 31, 2021 to determine the proper account balance.
Recommendation: We recommend that the Management Agent establish policy and procedures to reconcile the Resident Balance by Fiscal Period on a monthly basis to the following accounts to determine a complete and accurate account balance:
5. 1130 Tenant Accounts Receivable.
6. 1135 Accounts Receivable-HUD.
7. 2210 Prepaid Revenue.
8. 2191 Tenant Deposit Held in Trust (Contra)
Views of Responsible Officials and Corrective Action Plan: Do disagreements with the audit finding.