Finding Text
Federal Agency: U.S. Department of Housing and Urban Development: Lower Income Housing Assistance Program – Section 8 Moderate Rehabilitation
(ALN 14.856) Compliance Requirement: Reporting – Financial Reporting (L) (MW) Type of finding: Material Weakness in Internal Control (MW), Instance of Noncompliance (NC) Statement of Condition: During our audit procedures over the reporting of FASS-PH System, we noted that the Unaudited REAC report for fiscal year June 30, 2023 was submitted late. Criteria Financial Assessment Sub-system, FASS-PH. The Uniform Financial Reporting Standards (24 CFR section 5.801) require PHAs to submit timely GAAP-based unaudited and audited financial information electronically to HUD. The Uniform Financial Reporting Standards requires PHA to submit the Unaudited REAC 60 days after fiscal year end. Cause of Condition The program staff faced performance challenges due to lack of staff which caused the accounting records to be delayed. Effect of Condition The Municipality failed to submit the required REAC report within the 60 calendar days required by the regulation, which leads to the noncompliance of the reporting requirement. Recommendation We recommend the Municipality’s management to implement proper internal controls in order to ascertain that the reports are submitted timely. Questioned Costs None