Finding 1236185 (2025-003)

2025-003 HUD Required Reporting Criteria Financial Data Schedule (FDS) submission for unaudited financials are due within 2 months after the fiscal year end; FDS audited submissions are due 9 months after fiscal year end; and the Federal Audit Clearing House reporting package is due 30 days after receipt of the auditors reports or 9 months after the end of the fiscal year end (24 CFR section 5.801). Condition It was identified during the audit that the Authority did not meet the prescribed deadlines for submitting the FASSPHA unaudited submission before due of February 28, 2026. Context The Authority has been catching up on audits and unaudited filings since 2023. The 2024 audit submission was first submission completed within the 9 month time period in several years. Cause The Authority is still catching up on submission and was about 30 days late in submitting the unaudited submission to HUD. Effect The failure to submit these reports on time undermines the Authority’s compliance with federal regulations, potentially affecting its eligibility for future funding and leading to reputational damage. It may also delay financial and operational decisions by HUD that depend on the analysis of these reports. Recommendations The Authority needs to improve its internal controls over financial reporting by submitting its financial data on a timelier basis. Questioned Costs None. Management Views Management acknowledges the audit findings and is committed to taking corrective actions.