Finding Text
2025-002 – REPORTING Other Matter/Significant Deficiency U.S. Department of Housing and Urban Development ALN #: 14.871 $ 14.879 – Housing Voucher Cluster CRITERIA The unaudited financial statements are due two months after the Authority’s fiscal year end and audited financial statements are due nine months after its fiscal year end (24 CFR section 5.801). CONDITION The required unaudited annual filing with HUD’s REAC Estate Assessment Center (REAC), for fiscal year 2025, was not made by the required deadline of September 15, 2025. This filing was submitted on March 2, 2026. The audited submission was not submitted by the March 31, 2026 deadline. CAUSE The Authority’s internal control processes were not sufficient to ensure timely filing of the unaudited FDS. EFFECT As a result of not submitting both the unaudited and audited FDS timely, HUD was limited in its ability to conduct proper monitoring and oversight of federal programs. QUESTIONED COSTS None identified. CONTEXT The Authority was required to submit unaudited financial information with HUD’s Real Estate Assessment Center (REAC), by September 15, 2025, and the audited submission by March 31, 2026. REPEAT FINDING Repeat Finding of 2024-002. RECOMMENDATION We recommend that the Authority ensure its year-end closing process is sufficient to allow for the timely filing of the unaudited FDS. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.