Audit 359703

Finding 2024-005: Financial Data Schedule Housing Choice Voucher – 14.871 Material Weakness/Noncompliance Reporting Criteria: Financial Assessment Sub¬system, FASS-PH. The Uniform Financial Reporting Standards (24 CFR section 5.801) require PHAs to submit timely GAAP-based unaudited and audited financial information electronically to HUD. The unaudited submission is due 60 days after the fiscal year end. The submission should include all financial activities of the reporting entity. Condition: The Authority’s unaudited submission was due November 30, 2024 and was not submitted until December 14, 2024. The submission did not include the activities of Rosewood Estates, LLC as required. Cause: The Authority utilizes a fee accountant to perform this function on its behalf. The monthly accounting during the year was behind and did not allow for the Authority to complete the unaudited submission by the deadline. Further, as noted in Finding 2024-004, the Authority did not address the accounting for Rosewood Estates, LLC until after the submission was complete and therefore it was not included. Effect or Potential Effect: The Authority was in noncompliance with filing its unaudited information to REAC by the deadline. Recommendation: The Authority should make an effort to have timely monthly financial reports which would allow it to be able to close its year end in a more timely fashion and would allow for the Authority to report to REAC by the deadline. Further, all financial activities of the reporting entity must be reported. View of the Responsible Officials of the Auditee: The auditee's management agrees with the finding.

Finding 2024-005: Financial Data Schedule Housing Choice Voucher – 14.871 Material Weakness/Noncompliance Reporting Criteria: Financial Assessment Sub¬system, FASS-PH. The Uniform Financial Reporting Standards (24 CFR section 5.801) require PHAs to submit timely GAAP-based unaudited and audited financial information electronically to HUD. The unaudited submission is due 60 days after the fiscal year end. The submission should include all financial activities of the reporting entity. Condition: The Authority’s unaudited submission was due November 30, 2024 and was not submitted until December 14, 2024. The submission did not include the activities of Rosewood Estates, LLC as required. Cause: The Authority utilizes a fee accountant to perform this function on its behalf. The monthly accounting during the year was behind and did not allow for the Authority to complete the unaudited submission by the deadline. Further, as noted in Finding 2024-004, the Authority did not address the accounting for Rosewood Estates, LLC until after the submission was complete and therefore it was not included. Effect or Potential Effect: The Authority was in noncompliance with filing its unaudited information to REAC by the deadline. Recommendation: The Authority should make an effort to have timely monthly financial reports which would allow it to be able to close its year end in a more timely fashion and would allow for the Authority to report to REAC by the deadline. Further, all financial activities of the reporting entity must be reported. View of the Responsible Officials of the Auditee: The auditee's management agrees with the finding.