Finding Text
Section 8 Voucher 2025-010 FINANCIAL REPORTING NONE ALN 14.871 CONDITION: On our review of the Financial Assessment Sub-system (FASS-PH), the Municipality submitted the GAAP- based audited financial information electronically to HUD for fiscal years 2024 and unaudited for fiscal year 2025 after required submitting date. Fiscal Due Date Past Due Year Date Submitted Days 2024-Audited March 31, 2025 December 23, 2025 267 days 2025-Unaudited August 31, 2025 Not submitted Program Findings/Noncompliance Recommendations Questioned Cost CRITERIA: According to 24 CFR 902.33 “Financial Reporting Requirements”, the PHA must submit an audited Financial Data Schedule no later than 9 months after the PHA’s fiscal year ends. PHAs are required to submit their financial information through the FASS-PH system. According to HUD notice PIH-2008-9 “Financial Reporting Requirements for the Housing Choice Voucher Program Submitted through the Financial Assessment Subsystem for Public Housing and the Voucher Management System”, the PHA must submit an unaudited Financial Data Schedule no later than 2 months after the PHA’s fiscal year ends. CAUSE AND EFFECT: This condition occurred because the Project Administrator has not adopted adequate internal controls and procedures designed to ensure the timely submission of program reports and the lack of adequate training and supervision of the municipal employees in charge of the preparation of the aforementioned reports. This condition, if not corrected, may increase the risk of avoidable instances of material non-compliances with the laws and regulations applicable to the Program. RECOMMENDATION: The Project Administrator should improve existing procedures to ensure the timely submission of the financial reports in order to comply with Federal regulation. Also, the Project Administrator should consider implementing a reporting calendar to maintain all personnel aware of the reporting deadlines of each federal financial report. This will provide an additional tool to help the Municipality in complying with the federal regulation.