Audit reveals GMF financial, bookkeeping errors

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MEMPHIS, Tenn. --  The non-profit agency under fire for how it manages government subsidized housing is under scrutiny again.

It's due to a yearly audit Global Ministries recently filed.

WREG learned GMF has been questioned about some of its finances and bookkeeping policies.

The News Channel 3 Investigators uncovered the documents in recent regulatory filings for the non-profit`s bonds for Goodwill Village, LLC.

Auditors documented three findings where GMF was not in compliance.

Two were related to finances, including incorrect information submitted to HUD on monthly, financial reports.

The third finding was in regard to Goodwill scoring a 49 during a 2015 inspection.

Auditors found bank reconciliations weren't being prepared in a timely manner.

According to auditors, in order to maintain compliance, financial status reports submitted to HUD must contain reliable, financial data.

It reveals on more than one occasion GMF reported inaccurate figures in monthly reports.

For example, it reported tenant subsidy rent at $7,290, but the "amount per project records" was actually $17,063.

The same figure was reported at $5,204 in an October Monthly Report, when records show it should have been $30,636.

As for that failing inspection score at Goodwill Village the cause was listed as, "The owner was unaware of the magnitude of the safety issues noted in the REAC inspection report."

It was noted that Goodwill Village later scored a 78 on a follow-up inspection. The owner also made improvements at the complex after being cited with numerous code violations.

GMF concurred with the audit findings and submitted a response about action it has taken to correct the problems.

Other than those three findings, the audit was clean.

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