Audit 409514

2022-002. Finding: Late Filing of Reporting Package to the Federal Audit Clearinghouse (Repeat Finding 2021,002, 2020-002) Criteria: Uniform Guidance requires an entity expending more than $750,000 of federal funds within a fiscal year to have the data collection form and reporting package submitted within nine months after the end of the audit period. Condition: The Authority’s audited financial statements were not submitted to the Federal Audit Clearinghouse by June 30, 2023. Questioned Costs: None noted. Cause: A lack of timely general ledger reconciliations contributed to the failure to timely file reports. Effect: The Authority is not in compliance with the reporting requirements set forth in the Compliance Supplement which could lead to sanctions by the funding sources. Recommendation: We recommend that the Authority implement procedures to ensure submission of the data collection form and reporting package to the federal audit clearinghouse within the nine month due date. Views of Responsible Officials: See the corrective action plan that accompanies the schedule of findings and questioned costs.

2022-003. Finding: Special Tests and Provisions – Cash Collateralization (Compliance; Internal Controls Over Compliance (2021-003) Material Weakness ALN 14.867 Indian Housing Block Grants Criteria: 24 CFR §1000.58 states: “Recipients shall invest IHBG funds only in: (1) Obligations of the United States; obligations issued by Government sponsored agencies; securities that are guaranteed or insured by the United States; mutual (or other) funds registered with the Securities and Exchange Commission and which invest only in obligations of the United States or securities that are guaranteed or insured by the United States; or (2) Accounts that are insured by an agency or instrumentality of the United States or fully collateralized to ensure protection, even in the event of bank failure.” Condition: During audit procedures related to compliance and cash, it was determined that the Authority had $2,885,546 of uninsured and uncollateralized cash balances at September 30, 2022. Questioned Costs: None noted. Cause: The Authority did not comply with 24 CFR §1000.58. Effect: In the event of bank failure, the federal funds held by the Authority would not be recovered. Failure to comply with cash collateralization policies outlined by the Department of Housing and Urban Development could lead to reduced future funding. Recommendation: The Authority should adopt procedures to ensure compliance with 24 CFR §1000.58 in the future. Views of Responsible Officials: See the corrective action plan that accompanies the schedule of findings and questioned costs.