Finding 1055144 (2022-004)

- Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2024-07-17

AI Summary

  • Core Issue: The Corporation failed to submit the required data collection form and reporting package to the Federal Audit Clearinghouse by the due date for 2021.
  • Impacted Requirements: This noncompliance violates the Uniform Guidance regulations, specifically 2 CFR Part 200 Section 200.512(d) regarding timely report submissions.
  • Recommended Follow-Up: Management should ensure timely electronic submission of data collection forms to the FAC each fiscal year and improve cash flow to avoid future delays.

Finding Text

Finding 2022-004 - U.S. Department of Housing and Urban Development, Mortgage Insurance Rental and Cooperative Housing for Moderate Income Families and Elderly, Market Interest Rate, CFDA #14.135 Statement of Condition: The Corporation did not submit the data collection form and required reporting package to the Federal Audit Clearinghouse (FAC) for the year ended December 31, 2021 by the required due date. Criteria: The Uniform Guidance, 2 CFR Part 200 Section 200.512(d), Report Submission, requires any non-federal entity that expends Federal awards which must be audited under Subpart F of 2 CFR to electronically submit to the FAC the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512. The Uniform Guidance, 2 CFR Part 200 Section 200.512(a)(1), Report Submission, requires the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512 to be submitted within the earlier of 30 calendar days after the receipt of the auditor's report(s) or nine months after the end of the audit period. Effect: Noncompliance with Uniform Guidance regulations. Cause: Limited available cash flow. Context : A test was performed to review the two most recent fiscal year audits performed under the Uniform Guidance and the required data collection forms were submitted to the FAC by the required due dates to determine if the Corporation qualified as a low-risk auditee. For the year ended December 31, 2020, an audit was performed under the Uniform Guidance and the data collection form was submitted February 28, 2022 which is after the due date of September 30, 2021. For the year ended December 31, 2021, an audit was performed under the Uniform Guidance and the data collection form was submitted January 5, 2023 which is after the due date of September 30, 2022. Questioned Costs: N/A Recommendation: We recommend management ensure that the data collection forms are submitted electronically to the FAC each fiscal year going forward. Views of Responsible Officials and Corrective Action Plan: Management acknowledges the data collection form for the years ended December 31, 2020 and 2021 were submitted late. The project was unable to pay the prior audit fees timely due to limited available cash flow causing a delay in the audits. Management will work to improve cash flow for timely payment of the required annual audits.

Categories

HUD Housing Programs Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 478699 2022-001
    Material Weakness Repeat
  • 478700 2022-002
    Material Weakness Repeat
  • 478701 2022-003
    Material Weakness Repeat
  • 478702 2022-004
    - Repeat
  • 478703 2022-005
    - Repeat
  • 478704 2022-006
    Material Weakness
  • 1055141 2022-001
    Material Weakness Repeat
  • 1055142 2022-002
    Material Weakness Repeat
  • 1055143 2022-003
    Material Weakness Repeat
  • 1055145 2022-005
    - Repeat
  • 1055146 2022-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.135 Mortgage Insurance_rental and Cooperative Housing for Moderate Income Families and Elderly, Market Interest Rate $7.10M
14.182 Section 8 New Construction and Substantial Rehabilitation $709,576