Audit 370757

The Authority did not file accurate and timely PR-26 “Financial Summary Report” and PR-29 “Cash on Hand Report” as required. The PR-29 report is HUD’s quarterly cash on hand report of CDBG and CDBG-CV Programs Cause: The Authority did not implement proper controls, including a review process to ensure that quarterly and year-end reporting information extracted from IDIS were accurate and timely reported as required. Condition: The Authority did not have proper controls in place to ensure that quarterly and year-end reports were done in a timely manner. Criteria: The Authority is required under 24CFR570.502(b) to remit the annual performance report PR-26 specifying the amount of funds drawn from the IDIS system 90 days after year end. Under CFR 200 – Uniform Administrative Requirements, Cost Principles and Audit Requirements Subpart D section 200.328 the PR-29 quarterly report is required to be submit quarterly no later than 30 days after year end Effect of Condition: The effect of not accurate and timely reporting affects HUD’s ability to analyze program activities and properly fund programs to meet the needs of the populations served. Recommendation: Internal controls are most effective when reviewing reconciliations and transactions are done by someone not responsible for the preparation of the reconciliations or responsible for the transactions. We recommend that reviews be conducted and documented by someone other than the preparer. We also recommend that the board be given copies of quarterly reports to ensure proper oversight of the financial records and timely submissions. Questioned Costs: $0 Response: This report was late every month in 2023, due to the new Finance Director trying to research and submit the correct numbers to HUD. In 2024 this report was submitted timely.