Finding Text
Finding SA2025-001 (Significant Deficiency) Grantor: U.S. Department of Housing and Urban Development Program Name: Moving to Work Demonstration Assistance Listing No: 14.881 Criteria: Program participants are required to submit audited financial reporting, including the FDS when applicable, in accordance with established deadlines and reporting requirements. Timely submission is necessary to demonstrate compliance with program reporting obligations and to support effective monitoring and oversight. Condition: The City did not submit the audited Financial Data Schedule (FDS) report for fiscal year 2024 within the required reporting deadline for HUD program 14.881. The audited FDS for FY2024 was due 3/31/2025 but was not submitted until 7/22/2025. Cause: The audited FDS submission was delayed due to the delayed completion of the City’s Annual Comprehensive Financial Report (ACFR), which affected the timing of the City’s audit reporting and related submission process. Effect: Failure to submit the audited FDS timely constitutes noncompliance with program reporting requirements and may impair HUD’s ability to monitor the City’s financial condition and program compliance. Recommendation: Management should establish timelines and interim milestones for completion of the City’s Annual Comprehensive Financial Report (ACFR) that support timely completion and submission of the City’s audited FDS by the 3/31 deadline. Management's Responses:: The City concurs with the importance of timely reporting and compliance. Both FY2024 and FY2025 have reporting delays due to staffing turnover and due to the implementation of new accounting software replacing legacy software that was over 30 years old. The implementation process consumed more time than the City anticipated thus delaying timely reporting. The City expects FY2026 to show significant improvement.