Finding 1166847 (2025-005)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2025-12-29

AI Summary

  • Core Issue: The Authority failed to submit its audited financial information to HUD by the deadline.
  • Impacted Requirements: Compliance with federal regulations and grant agreements, which require timely reporting.
  • Recommended Follow-Up: Establish better controls to ensure all necessary documentation is ready for timely submission in the future.

Finding Text

2025-005 - Reporting U.S. Department of Housing and Urban Development 14.871 - Housing Choice Voucher Cluster/Section 8 Housing Choice Vouchers L. Reporting - Significant Deficiency and Compliance Finding Condition: During review of the Housing Choice Voucher ("HCV") program, RBT noted that the Authority did not submit its GAAP-based March 31, 2024 audited financial information to HUD timely. Criteria: As a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts and to also maintain internal controls to provide reasonable assurance of compliance with these requirements. Cause: The Authority did not have controls in place to ensure appropriate audit ready information/documentation was ready in order for the audit to be conducted in a timely manner. Effect: Potential loss of funding due to noncompliance or additional noncompliance if a control is missed. Questioned Costs: None identified. Perspective: The submission of the annual audited report was not done within the required timeline, nine months after year-end. Repeat Finding: Not a repeat finding. Recommendation: RBT recommends that the Authority establish controls and prepare all required information/documentation to ensure that the Authority can submit the audited financial information to HUD timely. Auditee's Response: See corrective action plan.

Corrective Action Plan

Auditee’s Response and Planned Corrective Action: Management concurs with the audit finding and acknowledges HUD’s requirements for maintaining effective internal controls in accordance with applicable HUD regulations and guidance. The Authority acknowledges that required reports were not always submitted timely. Planned Corrective Action: A formal compliance and reporting calendar will be established identifying all required HUD, state, and audit-related submissions, including responsible staff and submission deadlines, to ensure timely and accurate reporting in accordance with HUD requirements. Management will conduct periodic monitoring to ensure timely and accurate reporting. Sustainability Measures: Reporting controls will be sustained through ongoing use of the compliance calendar, documented management reviews, and periodic reassessment of reporting requirements to reflect HUD and state regulatory changes.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1166845 2025-003
    Material Weakness Repeat
  • 1166846 2025-004
    Material Weakness Repeat
  • 1166848 2025-006
    Material Weakness Repeat
  • 1166849 2025-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $5.71M
14.850 PUBLIC HOUSING OPERATING FUND $1.11M
14.872 PUBLIC HOUSING CAPITAL FUND $963,869
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $151,359