Finding 1222996 (2024-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-07-06

AI Summary

  • Core Issue: The Authority failed to submit its 2023 Single Audit and Financial Data Schedule on time, missing deadlines by over 20 days.
  • Impacted Requirements: This non-compliance violates Uniform Guidance and HUD regulations, which require timely submissions within nine months post fiscal year-end.
  • Recommended Follow-Up: Implement internal controls to establish clear deadlines for month-end and year-end accounting processes to ensure future compliance.

Finding Text

Reporting – Late Report Submissions to Federal Audit Clearinghouse and HUD Identification as a Repeat Finding: Not a repeat finding Federal Awards: 14.881 -HUD Moving to Work Demonstration; 14.195 - HUD Project Based Cluster; 21.027 - Coronavirus State and Local Fiscal Recovery FUnds. Finding: The Authority did not file its annual 2023 Single Audit and Data Collection Form timely with the Federal Audit Clearinghouse (FAC) and did not file its audited Financial Data Schedule timely with the U.S. Department of Housing and Urban Development (HUD). Sample Size and Population: Sampling was not applicable to this finding. Questioned Costs: None Criteria: As stated in 2 CFR 200.512(a)(1), the Uniform Guidance requires submission of the Single Audit Reporting Package and Data Collection Form to the FAC nine months after the fiscal year-end. As stated in 24 CFR 902.33(c), HUD requires public housing authorities to submit an audited Financial Data Schedule (FDS) through FASS-PH no later than 9 months after the fiscal year-end. As such, the Authority’s 2023 Single Audit and Data Collection Form submission to the FAC and the audited FDS submission to HUD were both due September 30, 2024. Condition: The FAC submission and the audited FDS submission were each filed more than 20 days after the due date. Cause: During 2023, the Authority underwent a major accounting and tenant management software conversion which resulted in delays in completing the Single Audit. Effect: • The Authority was non-compliant with Uniform Guidance and HUD reporting deadlines. • Late availability of audit information delayed Federal oversight and public transparency. Recommendations: Develop internal controls that provide for month-end and year-end accounting close milestone that include deadlines that will ensure external reporting deadlines are able to be met. Management Response: Management response is reported in the “Corrective Action Plan” at the end of this report. Contact Person: Lowel Krueger, Executive Director

Corrective Action Plan

2024-001 Reporting – Late Report Submission to Federal Audit Clearinghouse and HUD Recommendation: Develop internal controls that provide month-end and year-end accounting close milestones that include deadlines that will ensure external reporting deadlines are able to be met. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to the finding: The Authority has reviewed and updated its financial reporting and closing processes and controls for the preparation of the final trial balances and related schedules. As part of this process, the Authority has created a year-end checklist with deadlines and status meetings to monitor the progress. Name(s) of the contact person(s) responsible for corrective action: Lowel Kruger, Executive Director. Planned completion date for corrective action plan: December 31, 2024.

Categories

HUD Housing Programs Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1222994 2024-001
    Material Weakness Repeat
  • 1222995 2024-001
    Material Weakness Repeat
  • 1222997 2024-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.881 MOVING TO WORK DEMONSTRATION PROGRAM $10.17M
10.447 RURAL MULTI-FAMILY HOUSING REVITALIZATION DEMONSTRATION PROGRAM (MPR) $3.28M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $2.48M
14.879 MAINSTREAM VOUCHERS $1.06M
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $1.02M
10.427 RURAL RENTAL ASSISTANCE PAYMENTS $929,723
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $318,118
10.405 FARM LABOR HOUSING LOANS AND GRANTS $257,807
14.896 FAMILY SELF-SUFFICIENCY PROGRAM $225,434
10.415 RURAL RENTAL HOUSING LOANS $164,524