FAC Explorer

Finding 1238750 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-09-30
Audit: 413673
Organization: Housing Authority of the City of Woonsocket (RI)
Auditor: CBIZ CPAS PC

AI Summary

  • Core Issue: The Authority failed to submit unaudited financial reports to HUD by the March 15, 2026 deadline, completing it instead on July 22, 2026.
  • Impacted Requirements: This delay violates the Uniform Financial Reporting Standards, affecting HUD's ability to monitor federal programs.
  • Recommended Follow-Up: The Authority should organize and provide all necessary audit documentation promptly to improve the audit process and avoid future delays.

Finding Text

2025-001 – REPORTING Other Matter/Significant Deficiency U.S. Department of Housing and Urban Development CFDA #: 14.850 – Public Housing Operating Fund Program CRITERIA Financial Reports (OMB No. 2535-0107) - Financial Assessment Sub- system, FASS-PH. The Uniform Financial Reporting Standards (24 CFR section 5.801) require PHAs to submit timely GAAP-based unaudited and audited financial information electronically to HUD. CONDITION The unaudited submission was required to be submitted to HUD by March 15, 2026, however, the submission was not completed until July 22, 2026. CAUSE The Authority’s general ledger system conversion caused delays and the timely completion of the submission. EFFECT As a result of not submitting the unaudited FDS timely, HUD was limited in its ability to conduct monitoring and oversight of federal programs. QUESTIONED COSTS None identified. CONTEXT The Authority submits the unaudited FDS annually. Our testing of the reporting requirement was limited to the single occurrence of the annual filing. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority ensure all requested audit documentation is organized and provided to auditors timely to ensure a more efficient audit process and prevent future reporting delays. AUDITEE’S RESPONSE AND PLANNED CORRECTIVE ACTION See Corrective Action Plan.

Corrective Action Plan

Auditee’s Response and Planned Corrective Action: The Housing Authority of the City of Woonsocket acknowledges the finding regarding the late submission of the unaudited Financial Data Schedule (FDS). The delay was primarily due to converting the Authority’s general ledger system. The delay occurred during the Authority’s transition to a new general ledger and financial management system. The system conversion affected the timely completion and reconciliation of financial information necessary to complete the FDS submission. Going forward, the Authority will establish a year-end schedule to ensure financial reconciliations and required audit documentation are completed and submitted on time. Management will monitor the year-end process and work with the fee accountant to ensure future FDS submissions are completed by HUD’s required deadline. Planned Implementation Date: December 31, 2026 Person Responsible for Corrective Action: Katherine Candelario, Deputy Executive Director

Categories

HUD Housing Programs

Programs in Audit

ALN Program Name Expenditures
14.871 SECTION 8 HOUSING CHOICE VOUCHERS $7.51M
14.850 PUBLIC HOUSING OPERATING FUND $6.36M
14.872 PUBLIC HOUSING CAPITAL FUND $5.30M