Finding Text
2024-007: Annual Reporting Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Section 8 Choice Housing Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: CA103AF0154-0160, CA103AFR323, CA103EH0005-0006, CA103VO0201-0206, CA103VO0208-0211, and CA103VOPR23; All 2024 Award Period: July 1, 2023 – June 30, 2024 Compliance Requirement Affected: L. Reporting Type of Finding: Material Weakness in Internal Control over Compliance and Material Noncompliance Criteria or Specific Requirements: 24CFR § 902.33 Financial Reporting requirements: (b) Annual unaudited financial information report filing dates. The unaudited financial information to be submitted to HUD in accordance with paragraph (a) of this section must be submitted to HUD annually, no later than 2 months after the PHA's fiscal year end, with no penalty applying until the 16th day of the 3rd month after the PHA's fiscal year end, in accordance with § 902.62. Also, 24 CFR section 5.801 (c) (1) requires that housing agencies submit timely GAAP-based unaudited and audited financial information electronically to HUD no later than 60 days after the end of the fiscal year. Condition: The City submitted their Financial Data Schedule (FDS), 3 months after the due date imposed by the federal government. Additionally, due to turnover in the Housing Department, we were unable to observe that the report and underlying documentation were reviewed prior to submission. Questioned Costs: None noted. Context: The City submits approximately 4 different reports to HUD with varying frequency and due dates throughout the year. Of these 4 reports, the FDS mentioned above, was the only report that was not submitted within the required due date. Cause: Due to staff turnover in the Housing Department, City staff were unable to meet the deadline to submit unaudited financial information. Therefore, the FDS was not submitted until 11/15/2024. Effect: The City was late in their submission of the FDS. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the City review and update internal controls to ensure that the FDS is completed and submitted in a timely manner. Views of Responsible Officials and Corrective Action: Management agrees with this finding. The City has contracted a financial consultant to prepare and submit financials monthly and annually. Internally, RBHA staff has established timelines for data preparation in advance of FDS deadlines to ensure the consultant is prepared to submit the financial reports in a timely manner. Staff has set ongoing calendar reminders to monitor and coordinate with all the parties involved the FDS submissions.