Finding 1057378 (2018-007)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2018
Accepted
2024-08-12
Audit: 317044
Organization: City of Compton (CA)

AI Summary

  • Core Issue: The Housing Authority failed to submit required annual financial reports (FASS-PH and 60002) to HUD for FY 2017-2018 and has not submitted an audited FASS-PH since 2010.
  • Impacted Requirements: Non-compliance with HUD's financial reporting standards under Title 24, which could lead to sanctions or loss of funding.
  • Recommended Follow-Up: Strengthen internal controls for report preparation and submission, and prioritize completing overdue financial audits to ensure compliance.

Finding Text

Criteria: TITLE 24- HOUSING AND URBAN DEVELOPMENT, PART 5- GENERAL HUD PROGRAM REQUIREMENTS; WAIVERS, Subpart H- Uniform Financial Reporting Standards, Section 5.801- Uniform Financial Reporting Standards states: "(b) Entities (or individuals) to which this subpart is applicable must provide to HUD, on an annual basis, such financial information as required by HUD." TITLE 24- HOUSING AND URBAN DEVELOPMENT, PART 982- SECTION 8 TENANT-BASED ASSISTANCE: HOUSING CHOICE VOUCHER PROGRAM, Subpart D - Annual Contributions Contract and PHA Administration of Program, Section 982.158- Program Accounts and Records states: "(a) The PHA must maintain complete and accurate accounts and other records for the program in accordance with HUD requirements, in a manner that permits a speedy and effective audit. The records must be in the form required by HUD, including requirements governing computerized or electronic forms of record-keeping. The PHA must comply with the financial reporting requirements in 24 CFR part 5, subpart H." Based on the above compliance requirements and review of the grant requirements, public housing agencies (PHAs) are required to submit the following reports: 1. HUD-52681-B, Voucher for Payment of Annual Contributions and Operating Statement 2. Financial Reports- Financial Assessment Sub-system, FASS-PH 3. HUD-52648, SEMAP Certification -Addendum for Reporting Data for De-concentration Bonus Indicator 4. HUD 60002, Section 3 Summary Report, Economic Opportunities for Low- and Very Low- Income Persons 5. HUD-50058, Family Report Condition: The Housing Authority did not submit the required annual FASS-PH and 60002 Section 3 Summary reports for FY 2017-2018 to HUD. In addition, an audited FASS-PH has not been submitted to HUD since FYE 2010 and an unaudited FASS-PH has not been submitted to HUD since FYE 2012. Cause: Lack of internal control over the preparation and submission of the FASS-PH and 60002 Section 3 reports. The City has not had financial audits completed for fiscal years after June 30, 2014. Effect or Potential Effect: Failure to comply with the reporting requirements may result in grantor sanctions, including potential loss of funding. Questioned Cost: None Context: The Housing Authority did not submit the required annual FASS-PH and 60002 Section 3 reports to HUD. The City has not filed the FASS-PH report since June 30, 2010. Repeat of a Prior-Year Finding: 2017-007, 2016-004, 2015-006, 2014-001, 2013-011

Categories

HUD Housing Programs Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 480930 2018-001
    Material Weakness Repeat
  • 480931 2018-002
    Material Weakness Repeat
  • 480932 2018-003
    Material Weakness Repeat
  • 480933 2018-004
    Material Weakness
  • 480934 2018-005
    Material Weakness
  • 480935 2018-006
    Material Weakness Repeat
  • 480936 2018-007
    Material Weakness Repeat
  • 480937 2018-008
    Material Weakness Repeat
  • 480938 2018-009
    Significant Deficiency Repeat
  • 480939 2018-010
    Material Weakness Repeat
  • 1057372 2018-001
    Material Weakness Repeat
  • 1057373 2018-002
    Material Weakness Repeat
  • 1057374 2018-003
    Material Weakness Repeat
  • 1057375 2018-004
    Material Weakness
  • 1057376 2018-005
    Material Weakness
  • 1057377 2018-006
    Material Weakness Repeat
  • 1057379 2018-008
    Material Weakness Repeat
  • 1057380 2018-009
    Significant Deficiency Repeat
  • 1057381 2018-010
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $8.17M
14.218 Community Development Block Grants/entitlement Grants $614,545
14.239 Home Investment Partnership Program $282,232
14.218 Community Development Block Grants/state's Program $12,142
14.231 Emergency Shelter Grants Program $10,091
16.738 Edward Byrne Memorial Justice Assistance Grant $6,227