Finding Text
Finding: 2024-003
Federal Agency: U.S. Department of Housing and Urban Development
Pass-through Agency: N/A
Federal Program Title: Section Housing Choice Vouchers Program
Assistance Listing Number: 14.871
Compliance Requirement: Reporting
Type of Finding: Non-compliance and Significant Deficiency
Responsible Official:
Prior year finding:
Juan Ortiz – Finance Director
N/A
Condition
The Municipality did not submit the audited financial report for the fiscal year ending June 30, 2024
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.- 81 -
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, 2024, 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.