Finding Text
Condition
The Municipality did not submit the audited financial report for the fiscal year ending June 30, 2023 on or
before 9 months after fiscal year ended, as required.
Criteria
22 CFR § 5.801 Uniform financial reporting standards, (b) (1) Entities (or individuals) to which this subpart is
applicable must provide to HUD such financial information as required by HUD. Such information must be
provided on an annual basis, except as required more frequently under paragraph (c)(4) of this section.
This information must be: (1) Prepared in accordance with Generally Accepted Accounting Principles as
further defined by HUD in supplementary guidance; (2) Submitted electronically to HUD through the internet,
or in such other electronic format designated by HUD, or in such non-electronic format as HUD may allow if
the burden or cost of electronic reporting is determined by HUD to be excessive; and (3) Submitted in such
form and substance as prescribed by HUD.
Also, on Section (c) (1) the financial information to be submitted to HUD in accordance with paragraph (b) of
this section, must be submitted to HUD annually, no later than 60 days after the end of the fiscal year of the
reporting period, and as otherwise provided by law. In addition, on Section (d) (1) states that unaudited
financial statements will be required 60 days after the PHA's fiscal year end, and audited financial statements
will then be required no later than 9 months after the PHA's fiscal year end, in accordance with the Single
Audit Act and 2 CFR Part 200, Subpart F.
Context
Although the Municipality had a waiver to submit the Financial Reports to HUD the US Housing and Urban
Development of the fiscal year ending June 30, 2022, they were unable to provide timely the financial
statements and related supporting documentation in order to apply required audit procedures.
Effect
The Municipality did not comply with the submission date required for the Financial Report to the US Housing
and Urban Development, this could affect the continuance and new approvals of federal program funds. Cause
The Municipal Housing Office of the Municipality has been in personal changes process and reviewing
accounting process that delay the process to analyses the financial information and submit on time or into the
period permitted.
Questioned costs
Not determined
Recommendation
We recommend the Municipality to maintain adequate accounting records related to the federal funds in
order to properly prepare the financial statements accurately and in a timely manner.
Management Response and Corrective Action
We are taking the necessary steps to speed up the process for submitting financial reports under current
circumstances in order to comply within the required period.