Lydia E. York Delaware State Auditor
Delaware State Housing Authority FY24
Financial Statement Audit – Fiscal Year Ended June 30, 2024
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Report Summary
Background
A financial statement audit of the Delaware State Housing Authority (a Component Unit of the State of Delaware) was conducted for Fiscal Year ended June 30, 2024. The primary objective of a financial statement audit is to provide reasonable assurance that the financial statements present fairly, in all material respects, the financial position of an entity.
This engagement, was conducted in accordance with 29 Del. C. §2906.
Key Information and Findings
Although the overall report contains an unmodified opinion, the audit report documents two significant deficiencies. Both findings were identified as repeat issues from the previous year. These recurrent issues highlight areas where previous recommendations have not yet been fully implemented or where challenges continue to persist:
- Adjustments were required to the General Fund and the Federal Programs Enterprise Fund. The adjustments should have been made during the DSHA year-end financial close. The net effect of these journal entries was a net decrease to assets and a corresponding net decrease of revenue of $877,123.
- Material adjustments were required to the Real Estate Assessment Center (REAC) financial data schedule to be presented without material misstatement in relation to the audited basic financial statements. The REAC financial data schedule should be reconciled prior to submission to the U.S. Department of Housing and Urban Development (HUD).
In response to the audit findings, management has committed to ensuring proper recording of all adjusting and closing journal entries and has implemented measures to address nonroutine transactions that were previously overlooked. Enhancements to financial closing procedures, secondary level reviews, and reconciliations for significant year-end balances will be carried out, starting with the 2025 Fiscal Year. Additionally, an outside accounting firm specializing in HUD reporting has been engaged to assist with the FY24 Audited submission and train staff on Federal Data Submission reporting to HUD REAC.
