INDIANAPOLIS — The State Board of Accounts is so concerned with the financial health of the state’s largest public housing system that it is recommending the Indianapolis Housing Agency create a special task force or get an external review to look over its finances.
SBA released its audit on July 18 which covered the time period Jan. 1, 2018 through Dec. 31, 2018.
The audit found what it called “material weakness” with the internal controls of IHA. “Material weakness” is the most serious designation given during this type of audit.
The review in particular was concerned with numerous financial adjustments which included a decrease in assets of about $3.2 million, a decrease of liabilities of about $784,000, a decrease in net position of about $1.2 million, an increase in revenue of about $506,000 and an increase in expenses of about $1.7 million.
For the past two years, Call 6 Investigates has been reporting on the financial mess within the Indianapolis Housing Agency. There were several federal reviews targeting the agency’s financial health.
RTV6 reached out to IHA Executive Director John Hall today. Hall said compliance is among his top priorities and that he and his team are committed to audits that conform to state and federal regulations. Hall also added that IHA employees have been undergoing training to address their money matters.
In response to the just released audit, IHA acknowledged the findings and provided what the agency calls a “corrective action plan.” The agency said it will update finance policies to ensure timely and accurate monthly and yearly reconciliations for all balance sheet accounts.
As part of the plan, IHA also said it is working on filling the vacant chief financial officer position and other open positions within the financial department.
The corrective action plan is shared with the U.S. Department of Housing and Urban Development which oversees the agency.
The State Board of Accounts will not review IHA’s audit until next year. At that point, IHA must disclose what it’s done to fix problems or the status of its plan to address the issues.