Finding 1217286 (2024-001)

2024-001 - Compliance with Reporting Requirements of OMB-Single Audit - Material weakness - Repeated and Modified (Prior Year Finding 2023-001) Federal program information: Funding Agency U.S. Department of Housing and Urban Development Program Title Indian Housing Block Grant Federal Assistance Listing Number 14.867 Condition: The data collection form for the year ended December 31, 2024, was not submitted to the Federal Audit Clearinghouse by the required deadline of September 30, 2025. Furthermore, the Annual Performance Report for the IHBG Grant was not submitted on a timely basis, and the submission of reports for the IHBG ARP and IHBG CARES grants were not received. Criteria: In accordance with Uniform Guidance (2 CFR § 200.320), the Housing Entity is required to submit the Data Collection Form (SF-SAC) to the Federal Audit Clearinghouse within the earlier of (1) 30 calendar days after receipt of the auditor’s report(s), or (2) nine months after the end of the audit period. Further, per 7 CFR § 2500.46, the Housing Entity is required to submit the Annual Performance Report (APR) within 90 days after the end of the reporting period. Although a 30-day extension was granted for the IHBG Grant, the report was still not submitted timely. Additionally, the APRs for the IHBG ARP and IHBG CARES grants were not received, resulting in noncompliance with federal requirements. Cause: The Housing Entity did not submit the Data Collection Form (SF-SAC) and the Annual Performance Reports (APR) for the IHBG Grant within the required timeframes. The delay for the IHBG Grant APR was due to delays in obtaining all necessary information and proper documentation to complete the Single Audit and related reports, while the APRs for the IHBG ARP and IHBG CARES grants were not received. Effect: The Housing Entity was not in compliance with federal regulations for the Annual Performance Reports (APR) and the Data Collection Form (SF-SAC) submissions. Auditor's Recommendation: We recommend that the Housing Entity enhance internal controls to ensure the timely preparation, proper documentation, and submission of the Annual Performance Reports (APR) and the Data Collection Form (SF-SAC). This could include establishing formal timelines, clearly assigning responsibilities, and implementing monitoring procedures to track and meet reporting deadlines.