Finding 1155646 (2024-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-09-26
Audit: 367893
Organization: Mercy Haven Inc. (NY)

AI Summary

  • Core Issue: The Organization failed to submit required financial information to HUD on time for multiple years, violating compliance regulations.
  • Impacted Requirements: Internal controls must ensure timely electronic submission of both unaudited and audited financial data as per HUD guidelines.
  • Recommended Follow-Up: Address technical issues with REAC and establish a reliable process for timely submissions to prevent future non-compliance.

Finding Text

Material Weakness 2009-003, 2016-001, 2017-001, 2018-001, 2019-001, 2020-001, 2021-001, 2022-001 and 2023-001 Internal Control over Compliance and Compliance with Reporting U.S. Department of Housing and Urban Development Housing Voucher Cluster: Mainstream Vouchers - CFDA No. 14.879 Award Year: 2010-2015, 2016, 2017, 2018, 2019, 2020, 2021, 2022, 2023 Criteria: Internal controls should be in place to ensure that the Organization electronically submits unaudited and audited financial information to the HUD via the REAC in accordance with HUD regulations (24 CFR 5.801 - Uniform Financial Reporting Standards). Condition: The Organization did not electronically submit to HUD via the REAC its unaudited financial information within 60 days after its fiscal year end, or its audited financial information within 9 months after its fiscal year ended. Current Status: Not corrected. Reasons for Recurrence: The Organization was working with an outside fee accountant to resolve past rejections and complete the outstanding prior years filings but encountered technical difficulties within REAC when attempting to resubmit. Fee accountant contacted both the HUD analyst and the HUD TAC in September 2016 in order to resolve the technical issues but was not provided with any solutions.

Corrective Action Plan

Planned Corrective Action: The Organization will reach out to HUD again to seek assistance to resolve the REAC system technical issues in order to move forward. Person Responsible: John Murray, Chief Financial Officer

Categories

HUD Housing Programs Material Weakness Reporting Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
14.879 Mainstream Vouchers $1.53M
14.217 Urban Studies Fellowships $21,725