Finding Text
Condition
The Municipality did not submit the audited financial statements under the Financial
Assessment Subsystem for the fiscal year ended June 30, 2023, on or before nine months
after fiscal year ended, as required by federal regulation.
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.
Effect
The Municipality did not comply with the submission date required to the Financial
Assessment Subsystem, this could affect the continuance and new approvals of federal
programs funds.
Cause
The Municipality did not have adequate internal controls to ensure compliance with reporting
requirements.
Questioned Costs
Not determined
Recommendation
The Municipality should prepare the financial statements on a timely basis. In addition, the
Municipality needs to implement adequate internal controls procedures in order to assure
that the supporting documentation is available on a timely manner.