Audit 317417

Criteria - The Uniform Financial Reporting Standards (24 CFR Section 5.801) require Public Housing Authorities to submit timely GAAP-based unaudited financial information to HUD annually, no later than 60 days after the end of the fiscal year of the reporting period, and as otherwise provided by law (see also 24 CFR 903.33). Condition - The Authority failed to submit its unaudited Financial Data Schedule (FDS) to HUD by the prescribed due date. Cause - The delay in submission was primarily attributed to internal staffing challenges and an oversight in the financial department's year-end closeout processes. Additionally, there was a lack of adequate monitoring and reminder systems for critical HUD reporting deadlines. Effect - The late submission of the unaudited FDS resulted in non-compliance with HUD's reporting requirements, potentially affecting Authority’s future funding allocations and its reputation with HUD. Questioned Costs - None identified. Recommendation - We recommend that the Authority consider the following correct actions: 1) Review and strengthen internal controls related to the financial reporting process, ensuring all critical deadlines are met. 2) Provide additional training for finance department staff on HUD reporting requirements and the importance of adhering to submission deadlines. 3) Develop and implement a comprehensive monitoring system that alerts staff of upcoming HUD reporting deadlines well in advance. 4) Conduct a thorough review of the year-end closeout processes to identify and rectify inefficiencies that may lead to delays in financial reporting. Management’s Response - (1) Finding 2023-001 (a) Comments on the finding and recommendation - The Authority agrees with the finding. The Authority also agrees with the recommendation, please see below for action. (b) Action taken - The Authority will strengthen internal controls and training of staff to ensure reporting deadlines are met. (c) Planned implementation date - The Authority expects to complete the corrective actions by August 31, 2024, at the time of its next required unaudited submission.

Criteria - HUD mandates that all Public Housing Authorities accurately record and report all voucher program activities, including Project-Based Vouchers (PBV), in the Voucher Management System (VMS). This requirement is essential for ensuring transparency, accountability and proper allocation of federal funds. Condition - The Authority did not record transactions related to PBV via the VMS for the majority of the fiscal year as required. Cause - The omission appears to stem from a lack of understanding among the Authority’s staff regarding the specifics of reporting requirements for transactions within the VMS. Additionally, a gap in the internal training programs on VMS functionalities and reporting standards contributed to this oversight. Effect - The Authority was not in compliance with the reporting requirements of the Section 8 Housing Choice Vouchers Program. Questioned Costs - None identified. Recommendation - We recommend that the Authority consider the following correct actions: 1) Conduct comprehensive training sessions for all relevant staff on the requirements and procedures for recording PBV and other voucher transactions in the VMS. 2) Examine and update, as necessary, the Authority's internal control procedures to include specific guidelines on recording PBV transactions in the VMS. 3) Implement periodic internal audits focusing on VMS data entry and reporting practices to ensure ongoing compliance with HUD's requirements. Management’s Response - (2) Finding 2023-002 (a) Comments on the finding and recommendation - The Authority agrees with the finding. The Authority also agrees with the recommendation, please see below for action. (b) Action taken - The Authority will strengthen internal controls and training of staff to ensure all activity is accurately reported in VMS. (c) Planned implementation date - The Authority expects to complete the corrective actions by June 30, 2024

Criteria - The Uniform Financial Reporting Standards (24 CFR Section 5.801) require Public Housing Authorities to submit timely GAAP-based unaudited financial information to HUD annually, no later than 60 days after the end of the fiscal year of the reporting period, and as otherwise provided by law (see also 24 CFR 903.33). Condition - The Authority failed to submit its unaudited Financial Data Schedule (FDS) to HUD by the prescribed due date. Cause - The delay in submission was primarily attributed to internal staffing challenges and an oversight in the financial department's year-end closeout processes. Additionally, there was a lack of adequate monitoring and reminder systems for critical HUD reporting deadlines. Effect - The late submission of the unaudited FDS resulted in non-compliance with HUD's reporting requirements, potentially affecting Authority’s future funding allocations and its reputation with HUD. Questioned Costs - None identified. Recommendation - We recommend that the Authority consider the following correct actions: 1) Review and strengthen internal controls related to the financial reporting process, ensuring all critical deadlines are met. 2) Provide additional training for finance department staff on HUD reporting requirements and the importance of adhering to submission deadlines. 3) Develop and implement a comprehensive monitoring system that alerts staff of upcoming HUD reporting deadlines well in advance. 4) Conduct a thorough review of the year-end closeout processes to identify and rectify inefficiencies that may lead to delays in financial reporting. Management’s Response - (1) Finding 2023-001 (a) Comments on the finding and recommendation - The Authority agrees with the finding. The Authority also agrees with the recommendation, please see below for action. (b) Action taken - The Authority will strengthen internal controls and training of staff to ensure reporting deadlines are met. (c) Planned implementation date - The Authority expects to complete the corrective actions by August 31, 2024, at the time of its next required unaudited submission.

Criteria - HUD mandates that all Public Housing Authorities accurately record and report all voucher program activities, including Project-Based Vouchers (PBV), in the Voucher Management System (VMS). This requirement is essential for ensuring transparency, accountability and proper allocation of federal funds. Condition - The Authority did not record transactions related to PBV via the VMS for the majority of the fiscal year as required. Cause - The omission appears to stem from a lack of understanding among the Authority’s staff regarding the specifics of reporting requirements for transactions within the VMS. Additionally, a gap in the internal training programs on VMS functionalities and reporting standards contributed to this oversight. Effect - The Authority was not in compliance with the reporting requirements of the Section 8 Housing Choice Vouchers Program. Questioned Costs - None identified. Recommendation - We recommend that the Authority consider the following correct actions: 1) Conduct comprehensive training sessions for all relevant staff on the requirements and procedures for recording PBV and other voucher transactions in the VMS. 2) Examine and update, as necessary, the Authority's internal control procedures to include specific guidelines on recording PBV transactions in the VMS. 3) Implement periodic internal audits focusing on VMS data entry and reporting practices to ensure ongoing compliance with HUD's requirements. Management’s Response - (2) Finding 2023-002 (a) Comments on the finding and recommendation - The Authority agrees with the finding. The Authority also agrees with the recommendation, please see below for action. (b) Action taken - The Authority will strengthen internal controls and training of staff to ensure all activity is accurately reported in VMS. (c) Planned implementation date - The Authority expects to complete the corrective actions by June 30, 2024