Finding 30538 (2022-002)

Finding 2022-002 ? Accounting Controls ? Timeliness of Financial Statement Preparation ALN 14.182 Section 8 New Construction, Noncompliance & Material Weakness Criteria: Regulations at 24 CFR Part 5 describe the reporting requirements for Housing Authority?s that are recipients of Section 8 project-based housing grants. PHA?s that serve as contract administrators for the funding must submit financial information to HUD within sixty (60) days of the end of the reporting period. Condition & Cause: We noted that the client did not submit the Unaudited Financial Data Schedule to HUD within sixty days of the reporting period?s end date. The unaudited FDS was submitted May 8, 2023, into the HUD REAC online system with an original due date of November 30, 2022. This is largely due to staff turnover and other unexpected circumstances. Effect: Non-compliance and reporting deficiencies of the entity financial statements. Recommendation: We recommend that the Housing Authority review HUD reporting guidelines and submit these reports in a timely fashion. Questioned Costs: N/A Repeat Finding: No Views of responsible officials: The PHA agrees with the results of the audit and recommendation.