Audit 386466

2024-01 Late Submission of Audit Report to LLA and Federal Audit Clearinghouse Condition: The audit for the fiscal year ended December 31, 2024 was not submitted to the Louisiana Legislative Auditor within nine months after year end as required by the audit contract with the Louisiana Legislative Auditor. The audit is required to be submitted to the Criteria: Per LSA-R.S.24.513, audit reports must be submitted within the time frame noted in the audit contract. Timely submission ensures compliance with the contract with the Louisiana Legislative Auditor. Cause: The delay in submission was primarily due to staff turnover for the fiscal year ended. Effect: Late submission of the audit report resulted in noncompliance with the contract with the Louisiana Legislative Auditor. Recommendation: We recommend management implement controls to ensure timely audit completion and submission, including: establishing a clear timeline with milestones for audit preparation and review and ensuring financial records are prepared and reconciled well in advance of the audit period. Management Response: Management concurs with this finding. Steps will be taken to ensure future audit reports are submitted on time.

Finding 2024-02 – Untimely Submission of HUD Reports Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Programs: • Section 8 Housing Choice Voucher Program — Assistance Listing No. 14.871 • Mainstream Voucher Program — Assistance Listing No. 14.879 • Emergency Housing Voucher Program — Assistance Listing No. 14.EHV Compliance Requirement: Reporting Type of Finding: Noncompliance and Significant Deficiency in Internal Control over Compliance Criteria: In accordance with 2 CFR §200.328(b)(1), recipients of federal awards must submit performance, financial, and program reports by the due dates prescribed by the awarding agency. HUD’s program guidance further specifies that required submissions such as the Financial Data Schedule (FDS) must be filed electronically by their respective deadlines. Timely submission of these reports enables HUD to evaluate the Authority’s financial condition, compliance with program regulations, and overall performance in administering the Housing Choice Voucher (HCV) Programs. Condition: During our testing of compliance with reporting requirements, we noted the following exceptions:  The unaudited Financial Statements were submitted late  The Financial Data Schedule (FDS) was submitted beyond HUD’s required submission deadline. As a result, the Authority did not fully comply with HUD’s timeliness standards for required reporting. Questioned Costs: None. Cause: The delays were primarily attributed to staff turnover and insufficient internal monitoring of submission deadlines. Failure to submit required reports on time may hinder HUD’s ability to perform timely oversight of the Authority’s operations. Persistent delays could adversely affect the Authority’s designation status or potentially impacting eligibility for certain incentives or future funding opportunities. Identification as a Repeat Finding: ☐ Yes ☑ No Recommendation: We recommend the Authority strengthen internal controls over compliance with reporting requirements by: 1. Establishing a comprehensive reporting calendar that includes all HUD submission deadlines and responsible personnel. 2. Implementing an internal review checklist that requires supervisory sign-off before each submission. 3. Setting up automated deadline reminders within the Authority’s email or compliance tracking system. 4. Providing cross-training to ensure backup staff can complete and file reports in the absence of primary personnel. These actions will promote accountability, ensure timeliness, and reduce the risk of future noncompliance. Managements Response: Management concurs with the finding. The Authority has developed a Compliance Reporting Schedule listing all required HUD submissions, their due dates, and the responsible staff. Calendar reminders and verification checkpoints have been implemented to ensure timely submissions. In addition, the Authority will conduct quarterly internal audits to confirm adherence to HUD reporting requirements. Management anticipates full corrective action by December 2025.

Finding 2024-03 – Untimely Submission of audit report to Federal Audit Clearinghouse Criteria: In accordance with the Uniform Guidance the Authority is required to submit their audit report to the Federal Audit Clearinghouse within nine months subsequent to the Authority’s fiscal year end. Condition: The Authority did not submit their audit to the Federal Audit Clearinghouse within nine months subsequent to the Authority’s year end. Effect: This resulted in non compliance with the Uniform Guidance. Questioned Costs: None. Cause: The delays were primarily attributed to staff turnover and insufficient internal monitoring of submission deadlines. Recommendation: We recommend the Authority strengthen internal controls over compliance with reporting requirements by: 1. Establishing a comprehensive reporting calendar that includes the Uniform Guidance submission deadlines and responsible personnel. 2. Implementing an internal review checklist that requires supervisory sign-off before each submission. 3. Setting up automated deadline reminders within the Authority’s email or compliance tracking system. 4. Providing cross-training to ensure backup staff can complete and file reports in the absence of primary personnel. Managements Response: Management concurs with the finding. The Authority has developed a Compliance Reporting Schedule listing all required federal reporting submissions, their due dates, and the responsible staff. Calendar reminders and verification checkpoints have been implemented to ensure timely submissions. In addition, the Authority will conduct quarterly internal audits to confirm adherence to HUD reporting requirements. Management anticipates full corrective action by December 2025.