Finding Text
Finding No.: 2023-004
Federal Agency: U.S. Department of Housing and Urban Development (HUD)
Federal Cluster: Housing Voucher Cluster
AL Numbers: 14.EHV, COVID-19 14.HCC, 14.871, 14.879
Area: Special Tests and Provisions - Rolling Forward Equity Balances
Questioned Costs: $0
Criteria:
In accordance with applicable special tests and provisions for rolling forward equity balances, the Annual Contributions Contract (ACC) requires Public Housing Agencies (PHAs) to properly account for program activity by properly maintaining account balances, by supporting a proper roll-forward of equity with records and accounting transactions, and by correcting detected errors.
Condition:
Beginning balances of equity, including any adjustments by GHURA, per the FY2023 Trial Balance (TB) did not agree with the audited ending balances per the FY2022 Single Audit Report (SAR). We noted variances, as follows: See Schedule of Findings and Question Costs for chart/table.
Cause:
GHURA did not effectively enforce monitoring controls over compliance with special tests and provisions requirements for rolling forward equity balances.
Effect:
GHURA is in noncompliance with applicable special tests and provisions requirements for rolling forward equity balances. No questioned cost is reported as we are unable to quantify the extent of noncompliance.
Identification as a Repeat Finding: 2022-005
Recommendation:
Responsible personnel should enforce monitoring controls over compliance with applicable special tests and provisions requirements for rolling forward equity balances. Responsible personnel should reconcile the current year beginning balances with the prior year ending balances and should record adjustments, as necessary, to properly roll forward audited amounts.
Views of Responsible Officials:
Responsible accounting personnel coordinated and prioritized with HUD-Honolulu to resolve the submission of its unaudited and audited Fiscal Year 2020 and 2021 financial information in the Financial Assessment Sub-System (FASS-PH) as required from HUD-Honolulu by June 06, 2024. The Authority submitted the unaudited FY 2020 to HUD on May 18, 2024 and is in review by HUD. The unaudited FY 2021 is completed and inputted in the FASS-PH. To submit the audited FY 2020 and 2021, the audited submissions must be certified by an IPA before it is submitted to HUD. To get pass this step, the Authority is required to procure an Independent Public Auditor to certify the audited submissions for FY 2020 and FY 2021. The request for proposal is still ongoing. The audited FY 2022 was rejected by the current IPA on May 23, 2024. The Authority will be working with the IPA to submit the audited FY 2022 to HUD so that the Authority can meet the reporting requirements. Fiscal Year 2023 unaudited submission is in review with HUD and the audited FY 2023 submission will be worked on with the current IPA. Submission of the audited FY 2023 is contingent on the IPA’s agreement with the Authority. A waiver to submit the audited FY 2023 was submitted to HUD to request a due date on 09/01/2024.