Finding 1022 (2022-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-10-31

AI Summary

  • Core Issue: The Authority failed to submit its audited financial statements on time to the Federal Audit Clearinghouse and REAC.
  • Impacted Requirements: Compliance with 2 CFR Sections 200.512 and 902.33 regarding timely reporting of financial documents.
  • Recommended Follow-Up: Enhance policies and internal controls to ensure timely submission of financial reports.

Finding Text

Finding 2022-02: Late Submission of Financial Statements to FAC and REAC (Significant Deficiency) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Federal Assistance Listing Number: 14.871/14.879 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 unaudited FDS to REAC within 3 months of fiscal year end and 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. 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.

Corrective Action Plan

Finding 2022-02: Late Submission of Financial Statements to FAC and REAC (Significant Deficiency) Corrective Action Plan: Lack of leadership and structure within the Finance department along with the ripple effects from a previous waiver submission requirement under COVID for delayed audit submissions lead to missed deadlines for the delivery of the financial statements to REAC. To remedy this finding, RRHA’s new CFO has implemented an earlier internal deadline for Unaudited FDS submissions. RRHA’s Unaudited FDS is due November 30th. However, the new internal deadline date will be scheduled before Thanksgiving each year. We will also work with our auditors to establish an audit schedule that will allow us to submit the Audited FDS prior to the June 30th deadline. Name of Responsible Person: Precious Washington, Senior Vice President/Chief Financial Officer Expected Completion Date: September 30, 2024

Categories

HUD Housing Programs Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1023 2022-002
    Significant Deficiency
  • 1024 2022-002
    Significant Deficiency
  • 577464 2022-002
    Significant Deficiency
  • 577465 2022-002
    Significant Deficiency
  • 577466 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $36.60M
14.850 Public and Indian Housing $23.60M
14.872 Public Housing Capital Fund $3.75M
14.239 Home Investment Partnerships Program $1.12M
14.879 Mainstream Vouchers $1.11M
14.218 Community Development Block Grants/entitlement Grants $517,452
14.850 Public and Indian Housing - Cares $259,064
14.871 Emergency Housing Vouchers $159,852
14.892 Choice Neighborhoods Planning Grants $133,825
14.896 Family Self-Sufficiency Program $60,000
14.870 Resident Opportunity and Supportive Services - Service Coordinators $59,865