Finding Text
Other Matter Noncompliance – Reporting and Significant Deficiency
Agency and Award: U.S. Department of Housing and Urban Development
ALN Number:
14.157, Supportive Housing for the Elderly and 14.195, Section 8 Housing Assistance Payments Program
Nonmaterial Noncompliance – Reporting
Criteria: Under the Uniform Guidance, Section 200.512, Report Submission, the audit must be completed and the data collection form and single audit reporting package must be submitted to the Federal Audit Clearinghouse (FAC) within the earlier or 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period. Additionally, internal controls pertaining to monthly and year-end close processes should include procedures to ensure all supporting schedules are prepared and reviewed timely ensuring timely audits and compliance with the Committee of Sponsoring Organizations (COSO) framework.
Condition: The audit of the Project for the year ended June 30, 2024, had a submission deadline of March 31, 2025. The Project’s June 30, 2024 Single Audit Package was not submitted to the FAC by the deadline of March 31, 2025.
Cause: Significant delays stemming from the Project’s year-end closing process extended over a prolonged period due to staffing challenges. As a result, delays in the completion of the audit result in required audit procedures and ultimate completion date to extend beyond the regulatory deadline.
Effect or Potential Effect: The late filing could potentially delay the ability of the federal government to monitor the Project.
Context: No monetary value or effect on population as the condition relates to the late filing of the audit report.
Questioned costs: None
Repeat finding: No
Recommendation: We recommend that management implement procedures and controls to ensure that all activity is properly reconciled on a timely basis so that future audits are completed timely.
Views of responsible officials of the auditee: Management agrees with the finding and recommendation.