Finding 1160441 (2023-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-10-15

AI Summary

  • Core Issue: The Authority submitted the unaudited FDS late, missing the August 31, 2023 deadline, and also failed to file the OMB Data Collection Form on time.
  • Impacted Requirements: Noncompliance with HUD's timely reporting requirements for FDS and OMB Data Collection Form submissions.
  • Recommended Follow-Up: Implement stronger controls and ensure adequate staffing to meet future filing deadlines for both submissions.

Finding Text

2023-002 Reporting – Inaccurate and Late FDS Submission and Late OMB Data Collection Form Submission Public and Indian Housing Program – CFDA Number 14.850 Section 8 Housing Voucher Cluster (Section 8): Section 8 Housing Choice Vouchers Program – CFDA Number 14.871 Mainstream Vouchers – CFDA Number 14.879 Material Weakness in Internal Control and Material Noncompliance Criteria: The Real Estate Assessment Center ("REAC") requires an accurate and timely submission of the unaudited FDS information. The OMB Data Collection Form is due to be electronically filed with the FAC at the completion of a Single Audit (but no later than 9 months after fiscal year end, unless extended). Condition: The unaudited FDS filing was not submitted within the timeframes specified by HUD. The Authority submitted the unaudited FDS filing on October 13, 2023 (the due date was August 31, 2023). The Authority was also required to submit the OMB Data Collection form to the Federal Audit Clearinghouse (“FAC”) by March 31, 2024 at completion of the single audit, but was not filed timely as the audit was completed on October 8, 2025. Cause: The Authority did not have the necessary controls over the period-end financial reporting process to file the required submissions timely. The Authority experienced business disruptions due to staff absences and turnover. Effect: The Authority did not submit a correct unaudited FDS within the time frames required by HUD, and therefore, was noncompliant with this reporting requirement as well as the requirement to submit the OMB Data Collection Form during the required time frame. Failure to properly file these forms timely could lead to significant issues including delays in funding. Questioned Cost: None Auditor’s Recommendation: The Authority should make every effort to file its REAC submissions accurately and timely and submit the OMB Data Collection form timely. Views of Responsible Officials of the Auditee: We concur with the recommendation. Due to staff absences and turnover, we were unable to submit the unaudited FDS before the filing deadline, and we were unable to file the OMB Data Collection Form before the filing deadline. We are taking corrective action to ensure there is adequate staffing and sufficient processes in place to submit the unaudited FDS submission and the OMB Data Collection Form before the filing deadline.

Corrective Action Plan

2023-002 Reporting – Inaccurate and Late FDS Submission and Late OMB Data Collection Form Submission Public and Indian Housing Program – CFDA Number 14.850 Section 8 Housing Voucher Cluster (Section 8): Section 8 Housing Choice Vouchers Program – CFDA Number 14.871 Mainstream Vouchers – CFDA Number 14.879 Material Weakness in Internal Control Material Noncompliance Condition: The unaudited FDS filing was not submitted within the timeframes specified by HUD. The Authority submitted the unaudited FDS filing on October 13, 2023 (the due date was August 31, 2023). The Authority was also required to submit the OMB Data Collection form to the Federal Audit Clearinghouse (“FAC”) by March 31, 2024 at completion of the single audit, but was not filed timely as the audit was completed on October 8, 2025. Auditor’s Recommendation: The Authority should make every effort to file its REAC submissions accurately and timely and submit the OMB Data Collection form timely. Action Taken: We concur with the recommendation. Due to staff absences and turnover, we were unable to submit the unaudited FDS before the filing deadline, and we were unable to file the OMB Data Collection Form before the filing deadline. We are taking corrective action to ensure there is adequate staffing and sufficient processes in place to submit the unaudited FDS submission and the OMB Data Collection Form before the filing deadline.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1160432 2023-002
    Material Weakness Repeat
  • 1160433 2023-003
    Material Weakness Repeat
  • 1160434 2023-004
    Material Weakness Repeat
  • 1160435 2023-002
    Material Weakness Repeat
  • 1160436 2023-003
    Material Weakness Repeat
  • 1160437 2023-004
    Material Weakness Repeat
  • 1160438 2023-002
    Material Weakness Repeat
  • 1160439 2023-003
    Material Weakness Repeat
  • 1160440 2023-004
    Material Weakness Repeat
  • 1160442 2023-003
    Material Weakness Repeat
  • 1160443 2023-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.850 Public Housing Operating Fund $3.40M
14.872 Public Housing Capital Fund $1.95M
14.879 Mainstream Vouchers $1.35M
14.871 Section 8 Housing Choice Vouchers $287,400
14.896 Family Self-Sufficiency Program $136,236
14.921 Older Adults Home Modification Grant Program $132,896
14.870 Resident Opportunity and Supportive Services - Service Coordinators $19,635