Core Issue: The Authority failed to submit the audited financial report by the March 31, 2023 deadline.
Impacted Requirements: This noncompliance affects HUD's ability to monitor federal programs effectively.
Recommended Follow-Up: Improve the procurement process for auditors to ensure timely submission of financial reports in the future.
Finding Text
2022-004 – NONCOMPLIANCE: REPORTING
Material Weakness/Material Noncompliance
U.S. Department of Housing and Urban Development
ALN #: 14.871– Housing Voucher Cluster
ALN #: 14.850– Public and Indian Housing
CRITERIA
Financial Reports (0MB No. 2535-0107) - Financial Assessment Sub- system, FASS-PH. The Uniform Financial Reporting Standards (24 CFR section 5.801) require PHAs to submit timely GAAP-based unaudited and audited financial information electronically to HUD. The FASSPH system is one of HUD's main monitoring and oversight systems for the HCV and PIH programs.
CONDITION
The Authority’s audited submission was not submitted by the deadline of March 31, 2023.
CAUSE
The Authority did not procure an auditor in a timely manner and was unable to submit the
audited FDS by the deadline.
EFFECT
As a result of not submitting the FDS timely, HUD was limited in its ability to conduct monitoring and oversight of federal programs.
QUESTIONED COSTS
None noted.
CONTEXT
The Authority submits the audited FDS annually. Our testing of the reporting requirement was limited to the single occurrence of the annual filing.
REPEAT FINDING
Not a repeat finding.
RECOMMENDATION
We recommend that the Authority improve the timing of the procurement process to ensure that the audited FDS is filed in a timely manner.
AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION
See Corrective Action Plan.
Corrective Action Plan
2022-004 –Noncompliance Reporting – ALN#14.871 – Housing Voucher Cluster and ALN#14.850 – Public & Indian Housing
The audit services procurement was a multiyear contract. The auditor for the 2023 audit is already in place and PHA will submit the 2023 audit timely.
Planned Implementation Date of Corrective Action
Reminders to Staff regarding appropriate verification of all income: Completed
Updates to Section 8 Administrative Plan and ACOP: 12/31/23
Retraining of staff, checklists and QC audit procedures: 6/30/24
Person(s) Responsible for Corrective Actions: Paul Dettman, PHA Consultant
Tracy Pero, Section 8 Staff
Leased Housing Program Manager
Senior Public Housing Manager