Audit 394569

Finding #2025-001 Prior Year Reporting Package and Data Collection Form Not Filed Timely: Statement of Condition – The City of Norwich Housing Authority’s June 30, 2024 reporting package and data collection form was not filed with the Federal Audit Clearinghouse on time due to delays in completing the audit. Criteria – Sec. 200.512 of the Uniform Guidance requires the reporting package and data collection form to be submitted to the Federal Audit Clearinghouse the earlier of 30 days after the reports are received from the auditors or nine months after the end of the audit period, unless a longer period of time was agreed to in advance by the cognizant or oversight agency for audit. Cause – Late filing of the Authority’s Unaudited REAC submission and delays in obtaining audit documentation from the fee accountant caused significant delays in the audit process. The Authority’s fee accountant did not complete the Unaudited REAC submission on time and was subsequently terminated. By the time the Authority could locate and contract with a replacement fee accountant, it was too late to leave sufficient time to complete the audit by the 9 month deadline. Effect – The effect is that the Housing Authority would not be considered a “Low Risk Auditee” for at least the fiscal years ending June 30, 2025 and June 30, 2026. This designation will require the auditor to audit at least 40% of the Housing Authority’s programs as Major programs until such time that the Housing Authority may be considered a “Low Risk Auditee” again. Recommendation – We recommend that management implement procedures to ensure that the reporting package and data collection form is filed timely.