Finding 957174 (2021-001)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2021
Accepted
2024-03-15
Audit: 295401
Organization: Housing Authority of Crisfield (MD)
Auditor: Sb & Company LLC

AI Summary

  • Core Issue: The Authority lacks adequate internal controls over financial reporting, leading to delays in financial information availability.
  • Impacted Requirements: Timely reporting for the Data Collection Form and FDS submissions was not met, affecting management decision-making.
  • Recommended Follow-Up: Implement necessary processes and controls to ensure accurate and timely financial statements for better management decisions.

Finding Text

Criteria The Authority must maintain an adequate system of internal controls over financial reporting in order to initiate, authorize, record, process, and report financial data reliably in accordance with accounting principles generally accepted in the United States of America. Condition Financial information was not available timely to meet the reporting deadlines for the Data Collection Form and FDS submissions. Questioned Costs Unknown. Cause The Authority has not implemented the processes and controls over its finance function needed to prepare accurate and timely financial information that can be used for management decisions. Effect Accurate financial information was not available to make management decisions. Additionally, this resulted in a delay in completing the audit. Recommendation The Authority must implement processes and controls to ensure accurate interim and year-end financial statements. Adequate and accurate financial information is vital to make management decisions that impact the Authority. This information must be shared timely and discussed to make the necessary changes that are needed and to prepare the proper cash flow projections.

Categories

Subrecipient Monitoring Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.850 Public and Indian Housing $1.16M
14.872 Capital Fund Program $36,445
14.850 Covid 19 - Public and Indian Housing $11,328