Audit 342411

CONDITION: On our review of the Financial Assessment Sub-system (FASS-PH), the Municipality has not submitted the GAAP- based unaudited financial information electronically to HUD for fiscal 2023. This condition, if not corrected, may increase the risk of avoidable instances of material non-compliances with the laws and regulations applicable to the Program. This condition is a repeated finding. Also the 2022 FASS-PH audited financial information was submitted to HUD after the required submittion date, as detailed below: Fiscal Due Date Past Due Year Date Submitted Days 2022 March 31, 2023 August 29, 2023 151 days CRITERIA: According to 24 CFR 902.33 “Financial Reporting Requirements”, the PHA must submit an unaudited Financial Data Schedule no later than 2 months after the PHA’s fiscal year ends. PHAs are required to submit their financial information through the FASS-PH system. CAUSE AND EFFECT: This condition occurred because the Project Administrator has not adopted adequate internal controls and procedures designed to ensure the timely submission of program reports and the lack of adequate training and supervision of the municipal employees in charge of the preparation of the aforementioned reports. RECOMMENDATION: The Project Administrator should improve existing procedures to ensure the timely submission of the financial reports in order to comply with Federal regulation. Also, the Project Administrator should consider implementing a reporting calendar to maintain all personnel aware of the reporting deadlines of each federal financial report. This will provide an additional tool to help the Municipality in complying with the federal regulation.

CONDITION: On our review of the Financial Assessment Sub-system (FASS-PH), the Municipality has not submitted the GAAP- based unaudited financial information electronically to HUD for fiscal 2023. This condition, if not corrected, may increase the risk of avoidable instances of material non-compliances with the laws and regulations applicable to the Program. This condition is a repeated finding. Also the 2022 FASS-PH audited financial information was submitted to HUD after the required submittion date, as detailed below: Fiscal Due Date Past Due Year Date Submitted Days 2022 March 31, 2023 August 29, 2023 151 days CRITERIA: According to 24 CFR 902.33 “Financial Reporting Requirements”, the PHA must submit an unaudited Financial Data Schedule no later than 2 months after the PHA’s fiscal year ends. PHAs are required to submit their financial information through the FASS-PH system. CAUSE AND EFFECT: This condition occurred because the Project Administrator has not adopted adequate internal controls and procedures designed to ensure the timely submission of program reports and the lack of adequate training and supervision of the municipal employees in charge of the preparation of the aforementioned reports. RECOMMENDATION: The Project Administrator should improve existing procedures to ensure the timely submission of the financial reports in order to comply with Federal regulation. Also, the Project Administrator should consider implementing a reporting calendar to maintain all personnel aware of the reporting deadlines of each federal financial report. This will provide an additional tool to help the Municipality in complying with the federal regulation.