Finding Text
Finding 2023-004 - U.S. Department of Housing and Urban Development, Mortgage Insurance Rental and Cooperative Housing for Moderate Income Families and Elderly, Market Interest Rate, ALN #14.135 Statement of Condition: The Corporation did not submit the data collection form and required reporting package to the Federal Audit Clearinghouse (FAC) for the year ended December 31, 2022 by the required due date. Criteria: The Uniform Guidance, 2 CFR Part 200 Section 200.512(d), Report Submission, requires any non-federal entity that expends Federal awards which must be audited under Subpart F of 2 CFR to electronically submit to the FAC the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512. The Uniform Guidance, 2 CFR Part 200 Section 200.512(a)(1), Report Submission, requires the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512 to be submitted within the earlier of 30 calendar days after the receipt of the auditor's report(s) or nine months after the end of the audit period. Effect: Noncompliance with Uniform Guidance regulations. Cause: Limited available cash flow. Context: A test was performed to review the two most recent fiscal year audits performed under the Uniform Guidance and the required data collection forms were submitted to the FAC by the required due dates to determine if the Corporation qualified as a low-risk auditee. For the year ended December 31, 2021, an audit was performed under the Uniform Guidance and the data collection form was submitted January 5, 2023 which is after the due date of September 30, 2022. For the year ended December 31, 2022, an audit was performed under the Uniform Guidance and the data collection form was submitted July 17, 2024 which is after the due date of September 30, 2023. Questioned Costs: N/A Recommendation: We recommend management ensure that the data collection forms are submitted electronically to the FAC each fiscal year going forward. Views of Responsible Officials and Corrective Action Plan: Management acknowledges the data collection form for the years ended December 31, 2021 and 2022 were submitted late. The project was unable to pay the prior audit fees timely due to limited available cash flow causing a delay in the audits. Management will work to improve cash flow for timely payment of the required annual audits.