Finding Text
US Department of Housing and Urban Development Direct Award Program Name Section 8 Housing Choice Vouchers Significant Deficiency CFDA Number 14.871 2022-02 Reporting 2021-01 Repeat Finding Criteria Financial Data Schedule (FDS) submission for unaudited financials are due within 2 months after the fiscal year end; FDS audited submissions are due 9 months after fiscal year end; and the Federal Audit Clearing House reporting package is due 30 days after receipt of the auditors reports or 9 months after the end of the fiscal year end (24 CFR section 5.801). Condition Management missed deadlines for its 2022 unaudited submissions again this year. Context Upon review of the unaudited FDS submission, we noted that the date of the submission was passed the due date. Cause Management was late in submitting its financial information to its fee accountant. This in part was caused by software changes that limited its ability to produce timely and reliable financial data. Effect For the unaudited submission, HUD will deduct 1 point from a PHA?s FASS score for every 15 days the submission is late with a maximum late penalty deduction of 5 points. Recommendations The Authority needs to improve its internal controls over financial reporting by submitting its financial data on a timelier basis and modifying its procedures to minimize its reliance on external spreadsheets for financial information. Management Views We agree with this finding and have outlined our plan of action in our corrective action plan.