Finding Text
2025-006: Annual Reporting Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Section 8 Choice Housing Vouchers Assistance Listing Number: 14.871 Federal Award Identification Number and Year: CA103VO, CA103AF, CA103 AFR; 2024 and 2025 Award Period: July 1, 2024 – June 30, 2025 Compliance Requirement Affected: L. Reporting Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matter Criteria or Specific Requirements: 24CFR § 902.33 Financial Reporting requirements: (b) Annual unaudited financial information report filing dates. The unaudited financial information to be submitted to HUD in accordance with paragraph (a) of this section must be submitted to HUD annually, no later than 2 months after the PHA's fiscal year end, with no penalty applying until the 16th day of the 3rd month after the PHA's fiscal year end, in accordance with § 902.62. Also, 24 CFR section 5.801 (c) (1) requires that housing agencies submit timely GAAP-based unaudited and audited financial information electronically to HUD no later than 60 days after the end of the fiscal year. Condition: The City submitted their Financial Data Schedule (FDS), 12 days after the due date imposed by the federal government. Questioned Costs: None identified Context: Nothing additional to provide Cause: Due to staff turnover in the Housing Department, City staff were unable to meet the deadline to submit unaudited financial information. Effect: The City was late in their submission of the FDS. Repeat Finding: Yes; 2024-007 Recommendation: We recommend that the City review and update internal controls to ensure that the FDS is completed and submitted in a timely manner. Views of Responsible Officials and Corrective Action: Management agrees with this finding. The recurrence of this finding, which also was identified in prior-year (2023-2024), is primarily due to disruptions in continuousness and the consistent implementation of established timelines and processes. Corrective action addressed in prior-year (2023-2024) remains in effect. The RBHA contracted a financial consultant to assist with the preparation and timely submission of monthly and annual financial reports in 2025. The RBHA also reinforced internal procedures to ensure staff prepare and provide the necessary financial data to the consultant in advance of the FDS submission deadlines as soon as the Single Audit is complete. Staff will continue to utilize calendar reminders to monitor deadlines and coordinate with the consultant and other parties involved in the reporting process to ensure timely reporting and timely completion of the audit. Management will communicate these responsibilities to new staff as necessary to ensure ongoing compliance and prevent recurrence.