Bloomington Housing Authority

2022-003. Account Analysis Criteria: HUD has certain accounting requirements for gathering, processing and reporting all financial transactions per HUD Financial Management Handbook No. 7475.1 Chapter 6. Condition: The level of effort devoted towards account analysis of balance sheet and income and expense items was insufficient. Several accounts were noted to be incorrect and / or unsupported with sufficient detail as follows: ? No supporting documentation or calculation maintained for the following account balances: - Prepaids - Payroll tax withholding - A/R - Fraud recovery - Allowance for doubtful account ? Fraud recovery - A/R ? HUD (EHV) - Other current liabilities ? No depreciation schedule prepared for FY 2022. ? Certain accounts did not reconcile to the schedule as follows: - Cash - FSS liability - Operating grant revenue for HCV HAP, FSS and ROSS. ? Few accounts were rolled forward from prior year without any adjustments made in the current year as follows: - Accrued compensated absences liability - A/R ? HUD (FSS) Questioned Costs: None noted. Effect: The PHA has not maintained ledgers with sufficient accuracy and proper supporting documentation and approval. Cause: It appears that PHA has not adhered to proper internal control and accounting procedures. Recommendation: I recommend that the PHA formulate a plan of action whereby all financial information can be gathered, processed and presented in an accurate manner backed by proper supporting documentation. Management?s Response: We agree with the Auditor?s finding and the following actions will be taken to improve the situation. Weekly, Monthly, and Yearly checklists will be created along with a specific criterion of required documentation to be kept with each account reconciliation. In the event of an account adjustment documentation will be kept to cross reference all adjustments back to the journal entry.

2022-004. Late Submission Criteria: The Authority must submit the audited financial statement to REAC and the Federal Clearinghouse within 9 months of the fiscal year. Condition: I noted that the Authority did not submit the electronic transmission of their GAAP based audited Financial Data Schedule (FDS) to the Financial Assessment Subsystem of REAC and the Federal Clearinghouse within the 9 months of their year-end. Questioned Costs: None noted. Effect: As a result, the Authority did not comply with the HUD requirement of submitting the audit within the time allotted. Cause: Due to change in personnel, the new management was late in securing an audit contract in due time which resulted in late completion of the audit. Recommendation: I recommend that the Authority implement controls to ensure the audit is complete and submitted in a timely manner. Management?s Response: We agree with the Auditor?s findings and feel that this was a one-time issue that will be corrected. As noted above, this happened due to a personnel change. Both the Director of Finance and the Executive Director moving forward are included in this part of the year-end procedure as part of our newly implemented year-end checklist.