Finding Text
2022-002 Reporting ? Inaccurate and Late FDS Submission and Late OMB Data Collection Form Submission Public and Indian Housing Program ? CFDA Number 14.850 Material Weakness in Internal Control Material Noncompliance Repeat finding of 2021-002 from March 31, 2021 Condition: The Authority?s original unaudited FDS filing was materially misstated. In addition, the Authority did not report the CARES Act activity in a separate column of the FDS as required. Also, the unaudited FDS filings were not submitted within the timeframes specified by HUD. The Authority submitted the unaudited FDS filing on May 26, 2023 (of which the normal due date was May 31, 2022). The Authority was also required to submit the audited FDS filing and the OMB Data Collection form to the Federal Audit Clearinghouse (?FAC?) by December 31, 2022 at completion of the single audit, but it was not filed timely, as the audit was completed on August 16, 2023. Criteria: The Real Estate Assessment Center ("REAC") requires an accurate and timely submission of the unaudited and audited FDS information. The OMB Data Collection Form is due to be electronically filed with the FAC at the completion of a Single Audit (but no later than 9 months after fiscal year end). Questioned Cost: None Effect: The Authority did not submit a materially correct unaudited and audited FDS within the time frames required by HUD, and therefore, was noncompliant with this reporting requirement as well as the requirement to submit the OMB Data Collection Form during the required time frame. Failure to properly file these forms timely could lead to significant issues, including delays in funding. Cause: The Authority did not have the necessary controls over the period-end financial reporting process to detect material misstatement and to file required submissions timely. The Authority experienced business disruptions due to the ongoing COVID-19 pandemic, including staff absences and turnover. Recommendation: The Authority should make every effort to file its REAC submissions accurately and timely and submit the OMB Data Collection form timely. Views of Responsible Officials of the Auditee: We concur with the recommendation. Due to the COVID-19 pandemic and related staff absences and turnover, we were not able to accurately close the books before the HUD specified unaudited and audited FDS filing deadline and unable to timely file the OMB Data Collection Form. We are very focused on ensuring there is adequate staffing and sufficient processes in place in order to be able to close the books prior to submitting a materially accurate unaudited FDS submission for the following fiscal year as well as timely file the audited FDS and OMB Data Collection Form.