Finding Text
2024-001 - Internal Control Over Compliance, and Compliance with Reporting
U.S. Department of Housing and Urban Development
Section 8 Housing Choice Vouchers - ALN 14.871
Criteria: Internal controls should be in place to ensure that the Town electronically submits unaudited
and audited financial information to the U.S. Department of Housing and Urban Development (“HUD”)
via the Real Estate Assessment Center (“REAC”) in accordance with HUD regulations (24 CFR 5.801 -
Uniform Financial Reporting Standards).
Condition: The Town did not electronically submit to HUD via REAC its fiscal 2024 unaudited financial
information within 5 months after its fiscal year end.
Cause: The Town's past REAC submission of unaudited financial information was rejected and remains
unresolved. As a result, submissions of audited financial information and subsequent years' unaudited
and audited financial information could not be done because of the unresolved rejection of the original
unaudited financial information.
Effect: Noncompliance could result in the Town being denied reimbursement of program expenditure,
or other sanctions and penalties by HUD.
Question Costs: None reported.
Recommendation: The Town must resolve the errors and submit all past due filings. Procedures must
then be implemented to ensure the unaudited and audited financial statements are electronically
submitted to HUD via REAC on a timely basis going forward.
Views of Responsible Officials of Auditee: The Town agrees with the finding and was working with an
outside fee accountant to resolve past rejections and complete the outstanding prior years filings but
past filings needed to be completed before the current years.