Audit 318476

Criteria - According to HUD guidelines and Uniform Guidance (2 CFR 200.344) related to the Authority’s Public Housing Capital Fund Program (CFP) (Assistance Listing No. 14.872), final performance and financial reports are required to be submitted within 90 calendar days after the end of the period of performance. Condition - The Authority was unable to provide evidence that the required final performance and financial reports, including the HUD-50075.1 and HUD-53001, were completed within the 90-day period following the Disbursement End Date (August 15, 2023). As of the auditors’ opinion date, there is no evidence that the necessary reports were ever filed. Cause - The delay in submission was due to ineffective internal controls over the closeout process of individual CFP grant years. Effect - Late submission or non-submission of the required reports could result in delayed reviews by HUD, potential penalties, and could affect the Authority’s eligibility for future funding. Statistical Sampling - The sample weas not intended to be, and was not, a statistically valid sample. Questioned costs - None. Recommendation - We recommend that the Authority enhance its internal controls to ensure timely submission of required reports. This could include implementing deadline tracking systems, providing additional training for staff responsible for report preparation, and establishing internal review processes to ensure compliance with reporting deadlines. Management’s Response - (a) Comments on the finding and recommendation - The Authorit agrees with the finding. The Authority also agrees with the recommendation. Please see below for additional comments and action taken. (b) Action taken - The Authority will implement a comprehensive reporting calendar and tracking system, provide staff training on reporting requirements, establish an internal review and approval process for reports, conduct quarterly internal compliance audits, maintain regular communication with HUD, and continuously improve and document reporting processes with an annual review. These actions aim to ensure timely and accurate report submissions, thereby preventing future findings and maintaining eligibility for HUD funding. (c) Planned implementation date - The Authority plans to implement procedures during the fiscal year ending December 31, 2024 to resolve the reported finding.

Criteria - According to HUD guidelines and Uniform Guidance (2 CFR 200.344) related to the Authority’s Public Housing Capital Fund Program (CFP) (Assistance Listing No. 14.872), final performance and financial reports are required to be submitted within 90 calendar days after the end of the period of performance. Condition - The Authority was unable to provide evidence that the required final performance and financial reports, including the HUD-50075.1 and HUD-53001, were completed within the 90-day period following the Disbursement End Date (August 15, 2023). As of the auditors’ opinion date, there is no evidence that the necessary reports were ever filed. Cause - The delay in submission was due to ineffective internal controls over the closeout process of individual CFP grant years. Effect - Late submission or non-submission of the required reports could result in delayed reviews by HUD, potential penalties, and could affect the Authority’s eligibility for future funding. Statistical Sampling - The sample weas not intended to be, and was not, a statistically valid sample. Questioned costs - None. Recommendation - We recommend that the Authority enhance its internal controls to ensure timely submission of required reports. This could include implementing deadline tracking systems, providing additional training for staff responsible for report preparation, and establishing internal review processes to ensure compliance with reporting deadlines. Management’s Response - (a) Comments on the finding and recommendation - The Authorit agrees with the finding. The Authority also agrees with the recommendation. Please see below for additional comments and action taken. (b) Action taken - The Authority will implement a comprehensive reporting calendar and tracking system, provide staff training on reporting requirements, establish an internal review and approval process for reports, conduct quarterly internal compliance audits, maintain regular communication with HUD, and continuously improve and document reporting processes with an annual review. These actions aim to ensure timely and accurate report submissions, thereby preventing future findings and maintaining eligibility for HUD funding. (c) Planned implementation date - The Authority plans to implement procedures during the fiscal year ending December 31, 2024 to resolve the reported finding.