Finding Text
Criteria: The auditor should schedule out HAP payments for the current year and reconcile them to the amount recorded in the financial statements. The auditor will also determine whether the HAP payments requested on Form-52670 Housing Owners Certification and Application for Housing Payments agree with HAP Contract.
Condition: The Project did not provide the Housing Assistance Payments for the entire year for testing purposes. Therefore, the auditor's reliance on the ACH deposit received from HUD to determine the amount recorded in the financial statements,
Effect: The actual HAP billing for the audit period was not available for examination purposes.
Cause: The Project did not provide the twelve months of HAP billing requested.
Recommendation: The Project must follow provide record retention for HAP billing per the HUD.
Views of Responsible Officials and Corrective Action Plan: Do disagreements with the audit finding.