Finding 2025-001: Late Submission of Financial Statements to FAC and REAC (Significant Deficiency) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Section 8 Housing Choice Vouchers Federal Assistance Listing Number: 14.871 Compliance Requirement: Reporting Criteria: Per 2 CFR Section 200.512, the Authority is required to submit the Data Collection Form and the rest of the reporting package within the earlier of 30 calendar days after receipt of the auditor’s report or nine months after the end of the audit period. Per 2 CFR Section 902.33, the Authority is required to submit its audited Financial Data Schedule (FDS) and audited financial statements no later than 9 months after the PHA’s fiscal year end. Condition: The Authority did not submit its audited financial statements to the Federal Audit Clearinghouse and to REAC by the required due dates. Context: PHAs are required to submit an audited FDS and audited financial statements to REAC within 9 months of year end, as well as submit audited financial statements and a Data Collection Form to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of auditor’s report or nine months after the end of the audit period. The Authority did not submit its audited FDS and financial statements by the required due dates. Effect: The Authority did not submit its audited financial statements to the Federal Audit Clearinghouse or to REAC by the required due date. Questioned Costs: None Cause: The Authority did not have the proper controls in place to ensure the audited financial statements were submitted on time. Repeat Finding: This is not a repeat finding. Recommendation: The Authority should review and enhance its policies, procedures, and internal controls to ensure the financial reporting package and audited financial statements are submitted by the required due date. Views of Responsible Officials: The Authority agrees with the finding.
Finding 2025-002: Failure to File SEMAP (Material Weakness, Material Noncompliance) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Section 8 Housing Choice Vouchers Federal Assistance Listing Number: 14.871 Compliance Requirement: Reporting Criteria: Pursuant to 24 CFR § 985.101, Public Housing Agencies (PHAs) administering a Section 8 tenant-based assistance program are required to submit an annual SEMAP certification to HUD no later than 60 days after the PHA’s fiscal year-end. Condition: The Authority failed to submit its annual SEMAP Certification (form HUD-52648) to HUD within 60 days after the end of its fiscal year. Context: PHAs are required to submit the annual SEMAP Certification to HUD no later than 60 days after the PHA’s fiscal year end. Cause: The Authority failed to establish and implement effective internal controls to track regulatory reporting deadlines. Consequently, no SEMAP certification was completed or transmitted within the required period. Questioned Costs: None Effect: By failing to file the required certification, the PHA does not have a confirmed SEMAP score on record. Under HUD regulations, the lack of a timely submitted certification may cause the agency to receive a “troubled” designation for the entire fiscal year, which limits appeal rights and subjects the program to heightened HUD monitoring. Repeat Finding: This is not a repeat finding. Recommendation: The Authority should review and enhance its policies, procedures, and internal controls to ensure the annual SEMAP certification are submitted by the required due date. Views of Responsible Officials: The Authority agrees with the finding.
Finding 2025-003: Missing Tenant Information (Material Weakness, Material Noncompliance) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Section 8 Housing Choice Vouchers Federal Assistance Listing Number: 14.871 Compliance Requirement: Eligibility, Special Tests and Provisions Criteria: Per 24 CFR sections 982.158, 982.4, 982.516, and 982.517, PHAs are required to obtain documentation declaring the tenant is eligible to receive federal housing benefits, perform annual recertifications of tenant income through HUD Form 50058, determine that rent is reasonable, and determine that the utility allowance is reasonable. Condition: The Authority was unable to provide declarations of eligible status and annual recertifications. Furthermore, the Authority did not calculate income correctly to determine tenant’s rent amount. Context: Out of the 25 tenant files reviewed, we found the following exceptions: 1 file did not have proper declaration of eligible status 2 Housing Assistance Payment (HAP) amounts from the tested 50058s did not match the HAP check register 2 files did not have the required 50058 and related income support documentation 22 files did not have proper rent reasonableness documentation 9 files did not have proper utility allowance documentation 1 file did not have income calculated correctly Effect: The Authority was not in compliance with the eligibility and special tests and provisions requirements for the program. Cause: The Authority did not have the proper controls in place to ensure the files were complete and accurate. Repeat Finding: This is not a repeat finding. Recommendation: The Authority should review and enhance its policies, procedures, and internal controls to ensure the recertifications are performed and the necessary documentation is adequately retained in the Authority’s files. Views of Responsible Officials: The Authority agrees with the finding.
Finding 2025-004: Public Housing Federal Program Funds Utilized for HCV Federal Program (Significant Deficiency, Material Noncompliance) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Public Housing Operating Fund Federal Assistance Listing Number: 14.850 Compliance Requirement: Allowable Activities Criteria: Federal guidelines, HUD regulations, and specific grant provisions mandate that federal funds are not commingled with other federally funded programs and that the funds for one program not be utilized to pay for the costs of another program. Condition: Based on the balance of the Public Housing interfund receivable, it appears that funds from Public Housing have been used to subsidize the Housing Choice Vouchers (HCV) program. Context: As of September 30, 2025, Public Housing had an interfund receivable of $31,186. Cause: The Authority does not have enough non-federal cash on hand to adequately fund the HCV program operations. Questioned Costs: $31,186 Effect: The Authority risks violating federal funding regulations as it is unable to identify a nonfederal source to cover the costs of operations and avoid using other program’s cash flow to cover the costs associated with operating the HCV program. Recommendation: The Authority should locate additional sources of non-federal funds or reduce costs sufficiently so that the HCV program can have enough cash to cover ongoing operations and repay the Public Housing program. Repeat Finding: This is not a repeat finding. Views of Responsible Officials: The Authority agrees with the finding.
Finding 2025-005: Public Housing Capital Funds Drawn Down but Not Expended (Significant Deficiency, Material Noncompliance) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Public Housing Capital Fund Federal Assistance Listing Number: 14.872 Compliance Requirement: Cash Management Criteria: Federal guidelines require that non-federal entities must be paid in advance or paid within three days of the transfer of funds from HUD. Condition: During our review of grant revenue and capital asset additions for the Public Housing Capital Fund for the period of October 1, 2024 to September 30, 2025, we identified one instance where drawdown requests were submitted and funds received that were not expended as of year end. Context: As of September 30, 2025, the PHA did not expend Public Housing Capital Fund draw down in the amount of $34,865 made on June 12, 2025. Cause: The Authority did not have the internal controls in place to govern the timing of federal drawdown and disbursement of payments to vendors. Questioned Costs: $34,865 Effect: The Authority risks violating federal funding regulations to minimize the time elapsing between the transfer of funds and disbursement. Additionally, the Authority failed to calculate and remit interest earned on these federal advances to the awarding agency. Recommendation: The Authority should implement internal controls requiring the review and approval of drawdown requests to verify that costs have already been incurred or will be disbursed within three days. Repeat Finding: This is not a repeat finding. Views of Responsible Officials: The Authority agrees with the finding.