EIN: 730887814
UEI: PSKEUALBWML6
Data as of August 23, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on July 7, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by January 7, 2027 (136 days from today).
What is a management decision? →During the audit of cash and investments as of Fiscal Year Ending September 30, 2025, we noted that the bank reconciliations for the accounts showed a total reconciled account balance of $1,911,869, while the Unaudited FDS balance reflected $2,373,781. The difference of $461,912 was not properly investigated, adjusted, or explained. Questioned Costs: $461,912 Effect: Misstatement of cash and investment balances in the financial statements, as well as an increased risk of undetected errors. Cause: Lack of prior management oversight. Recommendation: Perform an investigation and correction of the current reconciling differences and record the appropriate adjusting journal entries. The housing authority should also implement a monthly cash reconciliation process that ensures the final reconciled balance fully agrees with the general ledger.
Show full finding ▾Hide full finding ▴2025-003 Cash and Investment Account Balances Do Not Reconcile to the Financial Statements Criteria: Internal controls require that all cash accounts be reconciled monthly on a timely basis, with all reconciling items (outstanding checks, deposits in transit, bank errors, unrecorded transactions, etc.) properly identified, investigated, and recorded in the general ledger so that the reconciled balance agrees with the financial statements. Condition: During the audit of cash and investments as of Fiscal Year Ending September 30, 2025, we noted that the bank reconciliations for the accounts showed a total reconciled account balance of $1,911,869, while the Unaudited FDS balance reflected $2,373,781. The difference of $461,912 was not properly investigated, adjusted, or explained. Questioned Costs: $461,912 Effect: Misstatement of cash and investment balances in the financial statements, as well as an increased risk of undetected errors. Cause: Lack of prior management oversight. Recommendation: Perform an investigation and correction of the current reconciling differences and record the appropriate adjusting journal entries. The housing authority should also implement a monthly cash reconciliation process that ensures the final reconciled balance fully agrees with the general ledger.
A review of financials determined that due to fraud bank accounts were closed and not correctly documented in the financials leading to a misstatement of assets. All accounts have been reviewed and adjusting entries made to correct prior deficienceis. LSHA has strengthened internal controls to prevent future discrepencies and has implemented a formal cash reconciliation procedure requiring all bank accounts to be reconciled following the end of each month. Each reconiciliation includes verification that the adjusted bank balance agrees to the general ledger cash balance, documentation of all outstanding reconciling items, and timely resolution of any differences identified.
During the audit, we identified deficiencies in the housing authority's revenue recognition process. A sample of revenue transactions revealed that revenue was frequently recognized without sufficient support from the Capital Fund Program ($92,807.06), Low Rent program ($407,580.87), and Housing Choice Voucher program ($538,791.86). Questioned Costs: $1,039,179.79 Effect: Overstatement of revenue in the audit period and corresponding misstatement of earning, assets, and liabilities. Cause: Inadequate review controls in the revenue cycle. Recommendation: We recommend that the Housing Authority maintain complete files with evidence of revenue transactions.
Show full finding ▾Hide full finding ▴2025-004 Improper Revenue Recognition Practices Criteria: Revenue recognition must be supported by adequate internal controls, proper documentation, and consistent application. Failure to comply can result in material misstatements of revenue, receivables, and related accounts. Condition: During the audit, we identified deficiencies in the housing authority's revenue recognition process. A sample of revenue transactions revealed that revenue was frequently recognized without sufficient support from the Capital Fund Program ($92,807.06), Low Rent program ($407,580.87), and Housing Choice Voucher program ($538,791.86). Questioned Costs: $1,039,179.79 Effect: Overstatement of revenue in the audit period and corresponding misstatement of earning, assets, and liabilities. Cause: Inadequate review controls in the revenue cycle. Recommendation: We recommend that the Housing Authority maintain complete files with evidence of revenue transactions.
Management has strengthened its recordkeeping practices to ensure that all revenues are fully supported by appropriate source documentation and are readily available for audit, monitoring, and financial reporting purposes. The Finance Director has conducted a review of current revenue documentation procedures to identify any gaps in record retention and establish standardized filing requirements for all revenue sources, including tenant rent, HUD operating subsidies, Capital Fund reimbursements, Housing Assistance Payments (HAP), administrative fees, miscellaneous income, grant revenues, and other receipts. Where documentation is incomplete, management has made reasonable efforts to obtain or recreate supporting records from available internal and external sources.
The Authority was unable to provide a majority of the supporting documentation. This includes but is not limited to the following significant areas: • invoices • tenant files • operating budget The Authority was unable to produce the requested documents supporting Housing Authority financial statements. Questioned Cost: Cannot be determined, due to incomplete information. Effect: Housing Authority’s financial statements are not supported. Cause: Lack of prior management oversight. Recommendation: We recommend the Housing Authority’s management implement a system to maintain source documents and files that support the financial transactions.
Show full finding ▾Hide full finding ▴2025-005 Missing Documentation Criteria: Requested information should be readily available for audit examination. Accurate record keeping and reporting are crucial to the successful management of funded activities. Condition: The Authority was unable to provide a majority of the supporting documentation. This includes but is not limited to the following significant areas: • invoices • tenant files • operating budget The Authority was unable to produce the requested documents supporting Housing Authority financial statements. Questioned Cost: Cannot be determined, due to incomplete information. Effect: Housing Authority’s financial statements are not supported. Cause: Lack of prior management oversight. Recommendation: We recommend the Housing Authority’s management implement a system to maintain source documents and files that support the financial transactions.
Management has established standardized filing procedures for both electronic and hard-copy records, requiring supporting documentation for all reeipts, disbursements, journal entries, payroll transactions, procurement activities, grant expenditures, and bank reconiciliations. LSHA updated it's written records retention policy that complies with applicable HUD regulations, federal record retention requirements, and the LSHA's internal policies. Finance staff have received training on documentation standards, file maintenance, and record retention requirements.
2024-003
During the audit period, the housing authority had not paid PILOT for two years. As of the fiscal year end, the Housing Authority owed approximately $67,748 in unpaid PILOT. No waiver or agreement reducing/eliminating the PILOT obligation was obtained from the local governing body. Questioned Costs: $67,748 Effect: Noncompliance with HUD regulations and the local cooperation agreement. Cause: Prior management did not prioritize the payments and did not pursue a formal waiver where potentially available. Recommendation: Immediately pay all outstanding PILOT amounts or obtain a formal written waiver from the appropriate local governing body.
Show full finding ▾Hide full finding ▴2025-006 Delinquent Payments in Lieu of Taxes Criteria: Per 24 CFR 990.190 and Section 6(d) of the United States Housing Act of 1937, Public Housing Authorities are required to make Payments in Lieu of Taxes (PILOT) to the local governing body. PILOT is generally calculated as 10% of shelter rents (net tenant rental revenue less utilities) or a lesser amount as prescribed by state law, local agreement, or due to non-performance by the local body. PHAs must pay or properly accrue these obligations in a timely manner and maintain supporting documentation. Condition: During the audit period, the housing authority had not paid PILOT for two years. As of the fiscal year end, the Housing Authority owed approximately $67,748 in unpaid PILOT. No waiver or agreement reducing/eliminating the PILOT obligation was obtained from the local governing body. Questioned Costs: $67,748 Effect: Noncompliance with HUD regulations and the local cooperation agreement. Cause: Prior management did not prioritize the payments and did not pursue a formal waiver where potentially available. Recommendation: Immediately pay all outstanding PILOT amounts or obtain a formal written waiver from the appropriate local governing body.
The agency submitted and received a formal waiver for the prior two years PILOT. To prevent future deficiencies, PILOT waiver requests have been incorporated into the Authority's annual budget process, and payment status will be reviewed annually to ensure waivers are permitted or payment was submitted as part of the financial close process.
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