Finding 393331 (2021-005)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2021
Accepted
2024-04-16

AI Summary

  • Core Issue: The PHA failed to submit the required SEMAP certification and filed unaudited financial data late.
  • Impacted Requirements: Non-compliance with 24 CFR sections 985.3(h) and 5.801 regarding timely report submissions.
  • Recommended Follow-Up: Management should establish procedures to ensure future compliance with federal reporting regulations.

Finding Text

In accordance with 24 CFR section 985.3(h) – Report Submission, PHAs with jurisdiction in metropolitan Fair Market Rent areas have the option of submitting data to HUD with their annual SEMAP certifications on the percent of their tenant-based Section 8 families with children who live in, and who have moved during the PHA fiscal year to, low poverty census tracts in the PHA’s principal operating area. Submission of this information with the SEMAP certification makes the PHA eligible for bonus points under SEMAP. In accordance with 24 CFR section 5.801 – Uniform Reporting Standards, PHAs are required to submit timely GAAP-based unaudited financial information electronically to HUD. The above requirements were not met for the 2021 audit. During the audit, we noted the 2021 SEMAP was not completed or filed with HUD as required. Additionally, the unaudited FDS was filed but filed after the required due date. The Authority was unaware the SEMAP was required to be filed annually. Due to staff turnover, the Authority was unable to complete the 2021 unaudited timely. The Authority was in violation of the Federal Regulations relating to report submissions. We recommend that Management implement procedures to ensure compliance with the above regulations as it relates to all federal awards.

Corrective Action Plan

Finding # 2021-005 Report Submission Corrective Action Plan: The new director and staff know that SEMAP reports are due annually. They also know that the report is the responsibility of the director to complete the SEMAP filing. The director who was in place during the 2019-2020-2021 should have filed the SEMAP report.

Categories

HUD Housing Programs Reporting

Other Findings in this Audit

  • 393330 2021-004
    Material Weakness Repeat
  • 393332 2021-006
    Material Weakness Repeat
  • 393333 2021-007
    Material Weakness Repeat
  • 393334 2021-008
    Material Weakness Repeat
  • 393335 2021-009
    Significant Deficiency Repeat
  • 969772 2021-004
    Material Weakness Repeat
  • 969773 2021-005
    Material Weakness Repeat
  • 969774 2021-006
    Material Weakness Repeat
  • 969775 2021-007
    Material Weakness Repeat
  • 969776 2021-008
    Material Weakness Repeat
  • 969777 2021-009
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $63,948