Finding Text
Late Submission of Unaudited Financial Data Schedule (FDS) (ALN 14.881) Condition: The Authority’s fiscal year ended September 30, 2025. The unaudited Financial Data Schedule (FDS) was required to be submitted electronically to HUD’s Real Estate Assessment Center (REAC) through the Financial Assessment Subsystem (FASS-PH) no later than November 29, 2025 (60 days after fiscal year end). The Authority did not submit the unaudited FDS until May 29, 2026 —approximately six months after the required due date. Criteria: 24 CFR §5.801 (Uniform Financial Reporting Standards) requires PHAs to submit unaudited financial information (the FDS) to HUD via FASS-PH no later than 60 days after the fiscal year end, and audited financial information no later than 9 months after fiscal year end. The 2025 Compliance Supplement (4-14.881, §III.L.1.d) identifies the FASS-PH financial submission (OMB No. 2535-0107) as a Reporting requirement subject to audit and references Notice PIH 2012-21, Section 13, for MTW reporting to FASS-PH. Cause: The Authority did not have adequate procedures or a monitoring calendar to ensure regulatory financial reporting deadlines were met, contributed to by delays in completing the year-end close. Effect: Noncompliance with 24 CFR §5.801. Late submission of unaudited financial data impairs HUD/REAC’s ability to timely assess the Authority’s financial condition and may adversely affect the Authority’s financial assessment and PHAS score. Questioned Costs: None. Recommendation: The Authority should establish a regulatory reporting calendar with assigned responsibility and supervisory review to ensure the unaudited FDS is submitted to FASS-PH within 60 days of fiscal year end (and the audited FDS within 9 months), supported by an accelerated year-end close process. Reply and Corrective Action Plan: The Authority concurs with the finding regarding late submission of the unaudited FDS. Establish a regulatory reporting calendar; assign responsibilities and supervisory review; and accelerate year-end closing procedures to support timely FDS submissions.