Finding 1160368 (2023-005)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-10-14

AI Summary

  • Core Issue: The Authority failed to submit accurate and timely PR-26 and PR-29 reports as required by HUD regulations.
  • Impacted Requirements: Reports must be submitted within specified timeframes: PR-26 within 90 days after year-end and PR-29 quarterly within 30 days.
  • Recommended Follow-Up: Implement a review process by someone not involved in report preparation and provide quarterly reports to the board for oversight.

Finding Text

The Authority did not file accurate and timely PR-26 “Financial Summary Report” and PR-29 “Cash on Hand Report” as required. The PR-29 report is HUD’s quarterly cash on hand report of CDBG and CDBG-CV Programs Cause: The Authority did not implement proper controls, including a review process to ensure that quarterly and year-end reporting information extracted from IDIS were accurate and timely reported as required. Condition: The Authority did not have proper controls in place to ensure that quarterly and year-end reports were done in a timely manner. Criteria: The Authority is required under 24CFR570.502(b) to remit the annual performance report PR-26 specifying the amount of funds drawn from the IDIS system 90 days after year end. Under CFR 200 – Uniform Administrative Requirements, Cost Principles and Audit Requirements Subpart D section 200.328 the PR-29 quarterly report is required to be submit quarterly no later than 30 days after year end Effect of Condition: The effect of not accurate and timely reporting affects HUD’s ability to analyze program activities and properly fund programs to meet the needs of the populations served. Recommendation: Internal controls are most effective when reviewing reconciliations and transactions are done by someone not responsible for the preparation of the reconciliations or responsible for the transactions. We recommend that reviews be conducted and documented by someone other than the preparer. We also recommend that the board be given copies of quarterly reports to ensure proper oversight of the financial records and timely submissions. Questioned Costs: $0 Response: This report was late every month in 2023, due to the new Finance Director trying to research and submit the correct numbers to HUD. In 2024 this report was submitted timely.

Corrective Action Plan

Corrective Action Plan For the year ended December 31, 2023 The Housing Authority of the City of Hoboken respectfully submits the following corrective action plan for the year ended September 30, 2024. Auditor: Polcari & Company CPA 2035 Hamburg Tpke Unit H Wayne, New Jersey 07470 The findings from December 31, 2023, schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Finding- 2023-005 Redevelopment Authority – CDBG Type of Deficiency – Significant Deficiency Compliance Requirement – Reporting The Authority did not file accurate and timely PR-26 “Financial Summary Report” and PR-29 “Cash on Hand Report” as required. The PR-29 report is HUD’s quarterly cash on hand report of CDBG and CDBG-CV Programs Cause: The Authority did not implement proper controls, including a review process to ensure that quarterly and year-end reporting information extracted from IDIS were accurate and timely reported as required. Condition: The Authority did not have proper controls in place to ensure that quarterly and year-end reports were done in a timely manner. Criteria: The Authority is required under 24CFR570.502(b) to remit the annual performance report PR-26 specifying the amount of funds drawn from the IDIS system 90 days after year end. Under CFR 200 – Uniform Administrative Requirements, Cost Principles and Audit Requirements Subpart D section 200.328 the PR-29 quarterly report is required to be submit quarterly no later than 30 days after year end Effect of Condition: The effect of not accurate and timely reporting affects HUD’s ability to analyze program activities and properly fund programs to meet the needs of the populations served. View of Responsible Officials and Corrective Actions: This report was late every month in 2023, due to the new Finance Director trying to research and submit the correct numbers to HUD. In 2024 this report was submitted timely. If there are any questions regarding this plan, please contact: Justin Eby Executive Director (717) 394-0793 jeby@lchra.com

Categories

Internal Control / Segregation of Duties Allowable Costs / Cost Principles HUD Housing Programs Reporting

Programs in Audit

ALN Program Name Expenditures
14.218 Community Development Block Grants/entitlement Grants $3.81M
14.239 Home Investment Partnerships Program $2.82M
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.18M
14.267 Continuum of Care Program $864,752
14.231 Emergency Solutions Grant Program $765,893