Finding 400243 (2022-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2024-06-07

AI Summary

  • Core Issue: The Authority failed to submit its audited financial statements on time to the Federal Audit Clearinghouse and REAC.
  • Impacted Requirements: Compliance with 2 CFR Sections 200.512 and 902.33, which mandate timely submission of financial reports.
  • Recommended Follow-up: The Authority should improve its policies and internal controls to ensure timely submission of all required financial documents.

Finding Text

Finding 2022-002: Late Submission of Financial Statements to FAC and REAC (Significant Deficiency) Federal Agency: U.S. Department of Housing and Urban Development, U.S. Department of the Treasury Federal Program Title: All Federal Programs Federal Assistance Listing Number: 14.850, 14.871, 21.027 Compliance Requirement: Reporting Criteria: Per 2 CFR Section 200.512, the Authority is required to submit the Data Collection Form and the rest of the reporting package within the earlier of 30 calendar days after receipt of the auditor’s report or nine months after the end of the audit period. Per 2 CFR Section 902.33, the Authority is required to submit its audited Financial Data Schedule (FDS) and audited financial statements no later than 9 months after the PHA’s fiscal year end. Condition: The Authority did not submit its audited financial statements to the Federal Audit Clearinghouse and to REAC by the required due dates. Context: PHAs are required to submit an audited FDS to FAC and REAC within 9 months of fiscal year end. Effect: The Authority did not submit its audited FDS to REAC by the required due date. Cause: The Authority did not have the proper controls in place to ensure the unaudited FDS was re-submitted on time. Repeat Finding: This is not a repeat finding. Recommendation: The Authority should review and enhance its policies, procedures, and internal controls to ensure the financial reporting package and audited financial statements are submitted by the required due date. Views of Responsible Officials: The Authority agrees with the finding.

Corrective Action Plan

Finding 2022-002 Late Submission of Financial Statements to FAC and REAC (Significant Deficiency) Recommendation: The Authority should review and enhance its policies, procedures and internal controls to ensure the financial reporting package and audited financial statements are submitted by the required due date. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action Taken in response to finding: The Authority will evaluate its financial reporting, close processes and controls to determine whether additional controls over the preparation of the final trial balances and related schedules should be implemented. As part of this process, we will create a year end checklist with deadlines established and monitor status to ensure deadlines are met. Name of Contact Person responsible for Corrective Action: Cia Cook, Deputy Executive Director & CFO Planned Date for Corrective Action plan: June 30, 2024

Categories

HUD Housing Programs Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 400242 2022-001
    Material Weakness Repeat
  • 400244 2022-002
    Significant Deficiency
  • 400245 2022-002
    Significant Deficiency
  • 976684 2022-001
    Material Weakness Repeat
  • 976685 2022-002
    Significant Deficiency
  • 976686 2022-002
    Significant Deficiency
  • 976687 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $4.70M
14.850 Public and Indian Housing $3.46M
14.872 Public Housing Capital Fund $2.39M
21.027 Coronavirus State and Local Fiscal Recovery Funds $320,770
14.870 Resident Opportunity and Supportive Services - Service Coordinators $50,852
14.218 Community Development Block Grants/entitlement Grants $45,600
14.896 Family Self-Sufficiency Program $34,797