Finding 1214879 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-05-18
Audit: 401612
Organization: Newburyport Housing Authority (MA)
Auditor: CBIZ CPAS PC

AI Summary

  • Core Issue: The Authority failed to submit the required audited financial report to HUD by the December 31, 2025 deadline, completing it instead on May 8, 2026.
  • Impacted Requirements: This delay violates the Uniform Financial Reporting Standards, affecting HUD's ability to monitor federal programs effectively.
  • Recommended Follow-Up: The Authority should improve internal controls and ensure timely organization of audit documentation to prevent future delays.

Finding Text

2025-001 - REPORTING Other Matter / Significant Deficiency U.S. Department of Housing and Urban Development ALN #: 14.871 – Housing Voucher Cluster. CRITERIA Financial Reports (OMB No. 2535-0107) - Financial Assessment Sub- system, FASS-PH. The Uniform Financial Reporting Standards (24 CFR section 5.801) require PHAs to submit timely GAAP-based unaudited and audited financial information electronically to HUD. The FASSPH system is one of HUD's main monitoring and oversight systems for the HCVP. CONDITION The audited submission was required to be submitted to HUD by December 31, 2025, however, the audit was not completed until May 8, 2026. CAUSE The Authority’s internal control processes were not sufficient to ensure timely completion of the audit. EFFECT As a result of not submitting the audited FDS timely, HUD was limited in its ability to conduct monitoring and oversight of federal programs. QUESTIONED COSTS None identified. CONTEXT The Authority submits the audited FDS annually. Our testing of the reporting requirement was limited to the single occurrence of the annual filing. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority ensure all requested audit documentation is organized and provided to auditors timely to ensure a more efficient audit process and prevent future audit delays. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.

Corrective Action Plan

CORRECTIVE ACTION PLAN 2025-001- REPORTING Significant Deficiency/Noncompliance Auditee’s Response and Planned Corrective Action The Newburyport Housing Authority submitted audit documentation late due to the Executive Director, Tracy Watson, being on medical leave since August 2025. During this time, staff experienced difficulties obtaining the required documentation needed to complete the audit in a timely manner. The NHA Board of Commissioners named Kim Kane as Interim Executive Director during Tracy Watson’s absence. Kim Kane will ensure all documentation is submitted in full and in a timely manner. Planned Implementation Date of Corrective Action: Immediately Person Responsible for Corrective Action: Kim Kane, Interim Executive Director

Categories

HUD Housing Programs Internal Control / Segregation of Duties Subrecipient Monitoring Reporting Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $1.92M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $184,361
14.850 PUBLIC HOUSING OPERATING FUND $169,079