Finding Text
Assistance Listing Number, Federal Agency, and Program Name - 14.128, U.S. Department of Housing and Urban Development (HUD), Mortgage Insurance Hospitals Federal Award Identification Number and Year - N/A (2021) Pass through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - Yes 2023-006 Criteria - Per the Consolidated Audit Guide for Audits of HUD Programs Handbook issued by the HUD Office of Inspector General, hospitals are required to submit a budget for the new fiscal year within thirty (30) days of the start of the new fiscal year. Condition - The Organization did not submit the budget to HUD within 30 days of the start of its fiscal year. Questioned Costs - None If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported - N/A Identification of How Questioned Costs Were Computed - N/A Context - During testing, it was noted that the Organization's budget for the September 30, 2024 fiscal year was not submitted. Cause and Effect - A lack of effective internal controls over budget reporting resulted in the untimely submission of the budget. Recommendation - We recommend that the Organization implement internal controls to ensure that the budget is submitted timely within the deadline. Views of Responsible Officials and Planned Corrective Actions - Management has implemented a new review and oversight process related to the process for the budget submissions in question to ensure timely submission on a go forward basis.