Finding Text
Criteria - According to HUD guidelines and Uniform Guidance (2 CFR 200.344) related to the Authority’s Public Housing Capital Fund Program (CFP) (Assistance Listing No. 14.872), for modernization projects, the Authority shall submit the Actual Modernization Cost Certificate (AMCC) (Form HUD-53001) and the final Performance & Evaluation Report (P&E) (HUD-50075.1) within 90 days after the Expenditure End Date (EED).
Condition - The Authority did not submit the AMCC or P&E reports within 90 days after the EED for both MA01E035501-19 grant (EED - April 8, 2023) and MA01P035501-18 grant (EED - May 28, 2024).
Cause - The delay in submission was due to ineffective internal controls over the closeout process of individual CFP grant years.
Effect - Late submission or non-submission of the required reports could result in delayed reviews by HUD, potential penalties, and could affect the Authority’s eligibility for future funding.
Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample.
Questioned Costs - None identified.
Repeat Finding - This is not a repeat finding.
Recommendation - We recommend that the Authority enhance its internal controls to ensure timely submission of required reports. This could include implementing deadline tracking systems, providing additional training for staff responsible for report preparation, and establishing internal review processes to ensure compliance with reporting deadlines.
Management’s Response - (a) Comments on the finding and recommendation - The Authority agrees with the finding. The Authority also agrees with the recommendations, please see below for action taken.
(b) Action taken - The Authority will implement controls to ensure all Capital Fund Program grants are accurately reported and finalized with HUD within the required due dates.
(c) Planned implementation date of corrective action - Completed by March 31, 2025.