Finding 1158224 (2024-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-09-30

AI Summary

  • Core Issue: The Authority submitted its 2023 Single Audit and Financial Data Schedule late, missing deadlines by over 30 days.
  • Impacted Requirements: Non-compliance with 2 CFR 200.512(a)(1) and 24 CFR 902.33(c) regarding timely submissions to the Federal Audit Clearinghouse and HUD.
  • Recommended Follow-Up: Implement internal controls to ensure timely month-end and year-end accounting closes to meet external reporting deadlines.

Finding Text

Late Report Submissions to Federal Audit Clearinghouse and HUD Identification as a Repeat Finding: Not a repeat finding Finding: The Authority did not file its annual 2023 Single Audit and Data Collection Form timely with the Federal Audit Clearinghouse (FAC), and did not file its audited Financial Data Schedule timely with the U.S. Department of Housing and Urban Development (HUD). Criteria: As stated in 2 CFR 200.512(a)(1), the Uniform Guidance requires submission of the Single Audit Reporting Package and Data Collection Form to the FAC nine months after the fiscal year-end. As stated in 24 CFR 902.33(c), HUD requires public housing authorities to submit an audited Financial Data Schedule (FDS) through FASS-PH no later than 9 months after the fiscal year-end. As such, the Authority’s 2023 Single Audit and Data Collection Form submission to the FAC and the audited FDS submission to HUD were both due September 30, 2024. Sample Size and Population: Sampling was not applicable to this finding. Condition: The FAC submission and the audited FDS submission were each filed more than 30 days late. Cause: During 2023, the Authority underwent a major accounting and tenant management software conversion which resulted in delays in completing the Single Audit. Effect: The Authority was non-compliant with Uniform Guidance and HUD reporting deadlines. Late availability of audit information delayed Federal oversight and public transparency. Recommendations: Develop internal controls that provide for month-end and year-end accounting close milestone that include deadlines that will ensure external reporting deadlines are able to be met. Questioned Costs: None Management Response: Management response is reported in the “Corrective Action Plan” at the end of this report. Contact Person: Lowel Kruger, Executive Director

Corrective Action Plan

Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to the finding: The Authority has reviewed and updated its financial reporting and closing processes and controls he preparation of the final trial balances and related schedules. As part of this process, we will create a year-end checklist with deadlines established and set up status meetings to monitor the progress. Name(s) of the contact person(s) responsible for corrective action: Lowel Kruger, Executive Director. Planned completion date for corrective action plan: December 31, 2024

Categories

HUD Housing Programs Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1158223 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.881 Moving to Work Demonstration Program $10.17M
10.447 Rural Multi-Family Housing Revitalization Demonstration Program (mpr) $3.28M
14.879 Mainstream Vouchers $1.06M
14.871 Section 8 Housing Choice Vouchers $1.02M
10.427 Rural Rental Assistance Payments $929,723
14.195 Project-Based Rental Assistance (pbra) $318,118
10.405 Farm Labor Housing Loans and Grants $257,807
14.896 Family Self-Sufficiency Program $225,434
10.415 Rural Rental Housing Loans $164,524