Finding Text
Finding 2023-010 Reporting – Compliance and Internal Control U.S. Department of Housing and Urban Development 14.871 – Section 8 Housing Choice Voucher Condition: During review of the Housing Choice Voucher program, RBT noted that the PHA did not submit timely GAAP-based unaudited and audited financial information to HUD after year end, within two and a half months for unaudited, and nine months for audited. RBT also noted that the PHA did not submit the SEMAP performance reporting. Criteria: As a condition of receiving federal awards, the Town agrees to comply with 24 CFR section 985.3(h), 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 Town did not have controls in place to ensure that appropriate audit ready information/documentation was available in order for the unaudited FDS submission and audit to be conducted in a timely manner. The Executive Director was not aware of the annual SEMAP reporting requirement. Effect: Potential loss of funding due to noncompliance. Questioned Costs: None identified. Perspective: The GAAP-based unaudited and audited financial information and the SEMAP reporting were not filed timely. Repeat Finding: Repeat of finding 2022-007. Recommendation: RBT recommends that the Town implement procedures to ensure that all required information/documentation is prepared timely such that the Town can submit the unaudited and audited financial information to HUD timely. Auditee’s Response: The Town agrees with this finding. See corrective action plan.