The State Auditor’s Office recently released the fiscal year 2023 audit of the Delaware State Housing Authority (DSHA), which revealed several significant deficiencies in the authority’s internal controls. State Auditor Lydia York highlighted that while some of the findings may not be concerning on their own, the repeated nature of these deficiencies is worrisome. The audit identified six material adjustments to the Housing Development Fund and the Federal Programs Enterprise Fund, resulting in a net increase to assets and a decrease in revenue. Additionally, errors were found in the processing and payment of assistance, as well as inaccuracies in financial reporting.
DSHA management acknowledged the findings and committed to corrective actions, including process improvements, staff re-trainings, and hiring an outside firm to assist with financial reconciliations. However, Auditor York expressed concerns about the authority’s history of repeating the same deficiencies despite promises of improvement. She emphasized the need for management to take the findings seriously and make meaningful changes to address the issues.
While acknowledging DSHA’s efforts to assist residents during the affordable housing crisis, Auditor York hopes that a new administration following the upcoming election will bring about the necessary corrective changes. She urged management to prioritize implementing the corrective actions outlined in the audit report to improve the authority’s financial processes and internal controls. Overall, the audit findings underscore the importance of effective monitoring and enforcement of internal controls within state agencies to ensure accountability and compliance.
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