Finding 1090880 (2023-002)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-12-16

AI Summary

  • Core Issue: The Organization failed to submit both audited and unaudited financial statements to HUD by the required deadlines for the years ending June 30, 2022, and June 30, 2023.
  • Impacted Requirements: This noncompliance violates the Uniform Financial Reporting Standards (24 CFR Section 5.801), which mandate timely submission of financial information to HUD.
  • Recommended Follow-Up: The Organization should submit the overdue financial reports immediately and consider providing training on HUD reporting requirements to prevent future issues.

Finding Text

Finding 2023-002 - U.S. Department of Housing and Urban Development, Housing Voucher Cluster, Assistance Listing #14.871/14.879 Statement of Condition: For the year ended June 30, 2022, the Organization did not submit their audited financial statements to HUD by the required deadline. For the year ended June 30, 2023, the Organization did not submit their unaudited or audited financial statements to HUD by the required deadline. Criteria: The Uniform Financial Reporting Standards (24 CFR Section 5.801) require the Organization to submit timely GAAP-based unaudited and audited financial information electronically to HUD via the Financial Assessment Sub-System (FASS-PH). Cause of Condition: Management oversight and lack of Finance Officer in place during period under audit. Effect of Condition: Noncompliance with HUD requirements. Context: A test was performed to review the prior year submission of the audited financial statement submission to HUD for the year ended June 30, 2022 noting the audited financial statements had not been submitted to HUD. A test was performed to review the unaudited financial statement submission to HUD for the year ended June 30, 2023 noting the unaudited financial statement submission to HUD had not been submitted to HUD. Questioned Costs: N/A Recommendation: We recommend the Organization submit their financial report as soon as possible. Furthermore, we recommend that the Organization consider additional training related to HUD reporting requirements. Reporting Views of Responsible Officials and Corrective Action Plan: Management agrees with the above finding and will submit their financial information for the year ended June 30, 2022 and 2023. Management will re-evaluate its policies and procedures to determine any necessary changes.

Categories

HUD Housing Programs Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 514432 2023-001
    Material Weakness
  • 514433 2023-001
    Material Weakness
  • 514434 2023-001
    Material Weakness
  • 514435 2023-001
    Material Weakness
  • 514436 2023-001
    Material Weakness
  • 514437 2023-002
    Material Weakness
  • 514438 2023-002
    Material Weakness
  • 514439 2023-003
    Material Weakness
  • 514440 2023-003
    Material Weakness
  • 514441 2023-003
    Material Weakness
  • 514442 2023-003
    Material Weakness
  • 514443 2023-003
    Material Weakness
  • 1090874 2023-001
    Material Weakness
  • 1090875 2023-001
    Material Weakness
  • 1090876 2023-001
    Material Weakness
  • 1090877 2023-001
    Material Weakness
  • 1090878 2023-001
    Material Weakness
  • 1090879 2023-002
    Material Weakness
  • 1090881 2023-003
    Material Weakness
  • 1090882 2023-003
    Material Weakness
  • 1090883 2023-003
    Material Weakness
  • 1090884 2023-003
    Material Weakness
  • 1090885 2023-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $4.00M
93.569 Community Services Block Grant $955,624
14.879 Mainstream Vouchers $262,618
14.896 Family Self-Sufficiency Program $65,331