Finding Text
2024-002 - REPORTING
Material Weakness / Other Matter
U.S. Department of Housing and Urban Development
ALN: 14.871 / 14.879 – Housing Voucher Cluster
CRITERIA
The Authority’s unaudited annual filing with HUD’s Real Estate Assessment Center (REAC) for fiscal year ended June 30, 2024 was due no later than September 15, 2024.
CONDITION
The required unaudited annual filing with HUD’s Real Estate Assessment Center (REAC), for fiscal 2024, was not made by the required deadline of September 15, 2024. In addition, as noted in finding 2024-001, prior to audit adjustments, there were material misstatements that were not identified and corrected by management.
CAUSE
The system of internal controls was inadequate to prepare complete and accurate financial information in a timely manner.
EFFECT
Untimely and inaccurate filing hinders the timely administration and assessment of program results by grantor officials.
QUESTIONED COSTS
None Identified.
CONTEXT
The Authority was required to submit unaudited financial statements with HUD’s Real Estate Assessment Center (REAC) by September 15, 2024. The initial submission was submitted on September 18, 2024; However, accurate financial information was not available until March 2025.
REPEAT FINDING
Not a repeat finding.
RECOMMENDATION
We recommend that the Authority evaluate its system of internal controls and implement controls to ensure that all significant accounts are reconciled in a timely manner.
AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION
See Corrective Action Plan.