Finding 1073334 (2023-002)

Reporting None Financial Data Schedule (FDS) submission for unaudited financials are due within 2 months after the fiscal year end; FDS audited submissions are due 9 months after fiscal year end; and the Federal Audit Clearing House reporting package is due 30 days after receipt of the auditors reports or 9 months after the end of the fiscal year end (24 CFR section 5.801). Management missed deadlines for the audited submissions and missed the deadline for completing it Federal Audit Clearing House reporting package. Significant delay in the audit process resulted from these journal entries identified in finding 2023-001. Management was late in submitting its financial information to the auditor. This in part was caused by personnel changes that limited its ability to produce timely and reliable financial data. The Authority will receive a lower SEMAP score and will be classified as a troubled housing authority which could impact its subsidies. The Authority needs to improve its internal controls over financial reporting by submitting its financial data on a timelier basis. We agree with this finding and have outlined our plan of action in management's corrective action plan.