Finding 1152923 (2024-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-09-14

AI Summary

  • Core Issue: GHURA's reported financial data in the FASS-PH does not match its accounting records, indicating a lack of compliance with reporting standards.
  • Impacted Requirements: Timely and accurate submission of GAAP-based financial information to HUD is not being met, affecting multiple line items.
  • Recommended Follow-Up: Implement stronger monitoring controls and ensure accurate financial data is reported; consider contracting an independent accountant to certify past financial information.

Finding Text

Finding No.: 2024-002 Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: Housing Voucher Cluster Area: Reporting Questioned Costs: $0 Criteria: In accordance with applicable reporting requirements, the Uniform Reporting Standards requires the Public Housing Authorities (PHAs) to submit timely GAAP-based unaudited financial information electronically to HUD. Amounts reported in the Financial Assessment Subsystem (FASS-PH), should be accurate. Condition: Unaudited amounts reported in certain key line items in the FASS-PH for FY 2024 do not agree with underlying accounting records, as follows: Line Item ALN Per Report Per GL Details Over- (Under-)Reported Variance 11170 Administrative Fee Equity 14.EHV $ - $ 228,117 $ (228,117) 96900 Total Operating Expenses 14.EHV $ 33,725 $ (3,082) $ (36,807) 70600 HUD PHA Operating Grants 14.EHV $ 1,847,631 $ 146,532 $ 1,701,099 11040 Prior Period Adjustments 14.871 $ 67,953 $ - $ 67,953 11170 Administrative Fee Equity 14.871 $ 1,360,376 $ 2,127,926 $ (767,550) 11180 Housing Assistance Payments Equity 14.871 $ 6,626,675 $ 3,846,366 $ 2,780,309 347 Inter Program – Due To 14.871 $ 508,535 $ 456,295 $ 52,240 11040 Prior Period Adjustments 14.879 $ 337,017 $ - $ 337,017 70600 HUD PHA Operating Grants 14.879 $ 486,666 $ 439,024 $ 47,642 144 Inter Program Due From 14.879 $ 338,821 $ - $ 338,821 Cause: GHURA did not effectively implement monitoring controls over compliance with applicable reporting requirements. Also, relative to equity line items, GHURA is unable to input accurate unaudited FY 2023 financial information in the FASS-PH because audited FY 2020, FY 2021, FY 2022, and FY 2023 financial information in the FASS-PH are yet to be certified. Finding No.: 2024-002, continued Federal Agency: U.S. Department of Housing and Urban Development (HUD) AL Program: Housing Voucher Cluster Area: Reporting Questioned Costs: $0 Effect: GHURA is not in compliance with applicable reporting requirements. No questioned cost is reported as we are unable to quantify the extent of noncompliance. Identification as a Repeat Finding: 2023-003 Recommendation: Responsible personnel should implement monitoring controls over compliance with applicable reporting requirements. Prior to reporting amounts in the FASS-PH, responsible personnel should examine and maintain underlying accounting records to determine the accuracy and completeness of reported data. Also, as recommended by HUD, GHURA should contract its current independent public accountant (IPA) to certify the FY 2020 and FY 2021 financial information in the FASS-PH since the predecessor IPA is no longer available to certify the information they audited. Views of Responsible Officials: Refer to GHURA’s corrective action plan.

Corrective Action Plan

Finding #2024-002 Housing Voucher Cluster Reporting Views of Responsible Officials and Planned Corrective Action The Authority’s accounting team has been coordinating closely with HUD-Honolulu to resolve the submission of our unaudited and audited Fiscal Year (FY) 2020 and 2021 financial data, as required by June 6, 2024. Provided is a breakdown of the Authority’s progress: 1. FY 2020 unaudited submission was sent to HUD on May 18, 2024, and has since been approved. 2. FY 2021 unaudited submission is completed and has been inputted into FASS-PH. 3. FY 2020 and 2021 audited submissions require certification from an Independent Public Auditor (IPA). The Authority is currently in the process of procuring an IPA for this purpose, and the Request for Quotation (RFQ) is ongoing. 4. FY 2022 audited submission was unfortunately rejected by our current IPA on May 23, 2024. The Authority and the auditing firm are actively working together to address this and to ensure the reporting requirements are met. 5. FY 2023 unaudited submission has been approved by HUD. 6. FY 2023 audited submission is completed and inputted into FASS-PH. The Authority and the current IPA are working together to submit the report to HUD. 7. FY 2024 unaudited submission has been approved by HUD. 8. FY 2024 audited submission will be inputted and completed once the audit is completed. FDS line items 11170, 11180, 96900 are calculated amounts in the FASS-PH. These FDS line items are not reported in the Authority’s General Ledget Accounts, therefore a comparison should not be performed. The Authority is committed to fulfilling all reporting requirements accurately and timely. The Authority will continue to prioritize these submissions. Responsible Party: Frances Danieli, Controller Anticipated Date of Completion: Ongoing effort with the IPA and HUD

Categories

HUD Housing Programs Subrecipient Monitoring Reporting

Other Findings in this Audit

  • 1152919 2024-001
    Material Weakness Repeat
  • 1152920 2024-001
    Material Weakness Repeat
  • 1152921 2024-002
    Material Weakness Repeat
  • 1152922 2024-002
    Material Weakness Repeat
  • 1152924 2024-003
    Material Weakness Repeat
  • 1152925 2024-003
    Material Weakness Repeat
  • 1152926 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $49.10M
14.248 Community Development Block Grants Section 108 Loan Guarantees $12.03M
14.850 Public Housing Operating Fund $6.92M
14.239 Home Investment Partnerships Program $4.88M
14.872 Public Housing Capital Fund $2.12M
14.225 Community Development Block Grants/special Purpose Grants/insular Areas $2.02M
14.U01 Emergency Housing Voucher $1.73M
14.267 Continuum of Care Program $1.01M
14.157 Supportive Housing for the Elderly $949,552
21.023 Emergency Rental Assistance Program $659,000
14.879 Mainstream Vouchers $531,730
14.231 Emergency Solutions Grant Program $284,124
14.896 Family Self-Sufficiency Program $160,366
14.870 Resident Opportunity and Supportive Services - Service Coordinators $67,395
14.191 Multifamily Housing Service Coordinators $64,483
14.275 Housing Trust Fund $4,965