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Finding 2024-02 – Untimely Submission of HUD Reports Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Programs: • Section 8 Housing Choice Voucher Program — Assistance Listing No. 14.871 • Mainstream Voucher Program — Assistance Listing No. 14.879 • Emergency Housing Voucher Program — Assistance Listing No. 14.EHV Compliance Requirement: Reporting Type of Finding: Noncompliance and Significant Deficiency in Internal Control over Compliance Criteria: In accordance with 2 CFR §200.328(b)(1), recipients of federal awards must submit performance, financial, and program reports by the due dates prescribed by the awarding agency. HUD’s program guidance further specifies that required submissions such as the Financial Data Schedule (FDS) must be filed electronically by their respective deadlines. Timely submission of these reports enables HUD to evaluate the Authority’s financial condition, compliance with program regulations, and overall performance in administering the Housing Choice Voucher (HCV) Programs. Condition: During our testing of compliance with reporting requirements, we noted the following exceptions: The unaudited Financial Statements were submitted late The Financial Data Schedule (FDS) was submitted beyond HUD’s required submission deadline. As a result, the Authority did not fully comply with HUD’s timeliness standards for required reporting. Questioned Costs: None. Cause: The delays were primarily attributed to staff turnover and insufficient internal monitoring of submission deadlines. Failure to submit required reports on time may hinder HUD’s ability to perform timely oversight of the Authority’s operations. Persistent delays could adversely affect the Authority’s designation status or potentially impacting eligibility for certain incentives or future funding opportunities. Identification as a Repeat Finding: ☐ Yes ☑ No Recommendation: We recommend the Authority strengthen internal controls over compliance with reporting requirements by: 1. Establishing a comprehensive reporting calendar that includes all HUD submission deadlines and responsible personnel. 2. Implementing an internal review checklist that requires supervisory sign-off before each submission. 3. Setting up automated deadline reminders within the Authority’s email or compliance tracking system. 4. Providing cross-training to ensure backup staff can complete and file reports in the absence of primary personnel. These actions will promote accountability, ensure timeliness, and reduce the risk of future noncompliance. Managements Response: Management concurs with the finding. The Authority has developed a Compliance Reporting Schedule listing all required HUD submissions, their due dates, and the responsible staff. Calendar reminders and verification checkpoints have been implemented to ensure timely submissions. In addition, the Authority will conduct quarterly internal audits to confirm adherence to HUD reporting requirements. Management anticipates full corrective action by December 2025.