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AAT <br /> 20 <br /> 40w� Orange County, North Carolina <br /> Audit Findings (Continued) <br /> • 2024-004 Reporting Requirements for Section 8 Housing Program <br /> Public Housing Agencies (PHAs) are required to submit timely a Financial Assessment Sub-system (FASS-PH) GAAP- <br /> based unaudited and audited financial information electronically to HUD. In the course of performing our Single <br /> Audit testing, we noted the County had not submitted the 2023 FASS-PH report due to turnover in key positions. <br /> No questioned costs noted. <br /> The County completed the FASS-PH report and it has been submitted to HUD for 2023; additionally, the County has <br /> added this report to its annual year-end checklist going forward. <br /> Management Point (Recommendation) <br /> • Accounting for Special Revenue Funds <br /> During our review of the County's financial statements, we noted the DSS Payee Fund did not have any revenue or <br /> expenditure activity for the fiscal year under audit. Based on our review of the general ledger activity, it appears the <br /> County is still accounting for this fund as if it was still a custodial fund of the County where all amounts are received <br /> as cash and offset with a corresponding liability. With the change in accounting standard that was brought about by <br /> GASB Statement No. 84, Fiduciary Activities, this fund was reclassified to a special revenue fund in previous years and <br /> should be reflecting the inflows it receives during the fiscal year as revenues and conversely, the outflows as <br /> expenditures. Due to the fact that the activity for the fiscal year ended June 30, 2024, was not material, an audit <br /> adjustment to reclassify the activity was not required. However, we recommend County staff implement additional <br /> internal controls or additional annual closeout procedures to the ensure the amounts are properly recorded in <br /> accordance with generally accepted accounting principles (GAAP). <br /> Auditor's Discussion &Analysis (AD&A) Going Further. <br /> June 30, 2024 <br />