Finding 1159436 (2024-001)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2024

Accepted

2025-10-01

Audit: 370171

Organization: Housing Authority of the City of La Joya (TX)

Auditor: Juarez CPA Firm PLLC

AI Summary

Issue: The housing authority failed to submit required IRS Form 941s and did not pay all payroll tax liabilities for 2024.
Impact: Non-filing of Form 941s for Quarters 2, 3, and 4 means compliance with payroll tax obligations was not met.
Recommendation: Follow up to ensure all outstanding payroll tax payments are made and that Form 941s are filed for the missing quarters.

Finding Text

For the calendar year 2024, the housing authority did not submit the required IRS Form 941s and did not pay all payroll tax liabilities in full. While the authority calculated and reported its payroll tax liabilities on its Financial Data Schedule (FDS) submission, the required forms were not filed, and certain payroll tax payments remained outstanding as of year-end. The necessary Form 941s were not filed for Quarters 2, 3, and 4 of the 2024 calendar year.

Corrective Action Plan

PHA Response and Action Plan- Financial department management has been in contact with the Internal Revenue Service for the transfer of credentials from the previous management agent to Mission HA. This process has been tedious and at times unresponsive. We are currently working with the IRS for change of credentials and submission of all pending 941 payments. Deficiency will be resolved before close of 2025 FYE

Other Findings in this Audit

1159437 2024-002

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
14.871	Section 8 Housing Choice Vouchers	$837,292
14.850	Public Housing Operating Fund	$426,606
14.872	Public Housing Capital Fund	$70,581