Finding 31123 (2022-004)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-08-30

AI Summary

  • Core Issue: The Authority failed to submit the audited financial statement to REAC and the Federal Clearinghouse within the required 9-month timeframe.
  • Impacted Requirements: This late submission violates HUD regulations regarding timely audit submissions.
  • Recommended Follow-Up: Implement controls to ensure timely completion and submission of audits, as agreed upon by management.

Finding Text

2022-004. Late Submission Criteria: The Authority must submit the audited financial statement to REAC and the Federal Clearinghouse within 9 months of the fiscal year. Condition: I noted that the Authority did not submit the electronic transmission of their GAAP based audited Financial Data Schedule (FDS) to the Financial Assessment Subsystem of REAC and the Federal Clearinghouse within the 9 months of their year-end. Questioned Costs: None noted. Effect: As a result, the Authority did not comply with the HUD requirement of submitting the audit within the time allotted. Cause: Due to change in personnel, the new management was late in securing an audit contract in due time which resulted in late completion of the audit. Recommendation: I recommend that the Authority implement controls to ensure the audit is complete and submitted in a timely manner. Management?s Response: We agree with the Auditor?s findings and feel that this was a one-time issue that will be corrected. As noted above, this happened due to a personnel change. Both the Director of Finance and the Executive Director moving forward are included in this part of the year-end procedure as part of our newly implemented year-end checklist.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 31120 2022-003
    Material Weakness
  • 31121 2022-004
    Material Weakness
  • 31122 2022-003
    Material Weakness
  • 607562 2022-003
    Material Weakness
  • 607563 2022-004
    Material Weakness
  • 607564 2022-003
    Material Weakness
  • 607565 2022-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.872 Public Housing Capital Fund $1.62M
14.850 Public and Indian Housing $908,936
14.871 Section 8 Housing Choice Vouchers $61,249
14.896 Family Self-Sufficiency Program $58,943
14.249 Section 8 Moderate Rehabilitation Single Room Occupancy $31,807
14.870 Resident Opportunity and Supportive Services - Service Coordinators $27,107