Finding Text
REQUIREMENT REPORTING TYPE OF FINDING MATERIAL WEAKNESS FEDERAL PROGRAM 14.871 – SECTION 8 HOUSING CHOICE VOUCHERS CONDITION The Municipality did not submit or file the required FASS-PH financial report for the fiscal year ended June 30, 2023. At the completion of the audit, the report remained outstanding and had not been uploaded to the FASS-PH system, resulting in noncompliance with HUD’s reporting requirements. CRITERIA Entities administering the Section 8 Housing Choice Voucher Program (AL 14.871) must submit annual financial information to the U.S. Department of Housing and Urban Development (HUD) through the Financial Assessment Subsystem – Public Housing (FASS-PH). This requirement is established under: 2 CFR 200.327–200.328 (Uniform Guidance reporting requirements) HUD Uniform Financial Reporting Standards (UFRS) HUD Public Housing Assessment System (PHAS) – FASS-PH requirements Applicable HUD notices and guidance for FY 2023 These regulations require timely submission of complete and accurate financial data to allow HUD to evaluate the financial condition and compliance performance of the Municipality’s Housing Choice Voucher Program. CAUSE The failure to submit the FASS-PH report resulted from insufficient internal controls over the financial reporting process. Contributing factors included: Lack of a formal monitoring process to track HUD reporting deadlines Inadequate supervisory review of required submissions Limited staff knowledge of HUD’s UFRS and FASS-PH reporting procedures EFFECT Non-compliance may result in HUD administrative actions, negative impact on the municipality’s financial assessment score, delays or interruptions in federal funding and potential for increased oversight or monitoring by HUD. QUESTIONED COST None RECOMMENDATION The municipality should establish and document formal internal controls to ensure timely preparation and submission of the FASS-PH report. Assign responsibility to specific personnel and implement a compliance calendar for HUD reporting deadlines. Provide training to financial staff on HUD reporting requirements, UFRS, and the FASS-PH system. Implement a supervisory review process to verify completeness and accuracy before submission. Submit the outstanding FASS-PH report as soon as possible, if HUD still permits late filing.