Finding 404189 (2023-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-06-28
Audit: 310962
Auditor: Smco

AI Summary

  • Core Issue: The Authority missed the deadline for its unaudited FDS submission, which was due on December 15, 2023.
  • Impacted Requirements: This delay puts the Authority out of compliance with the reporting guidelines in the HCV compliance supplement.
  • Recommended Follow-Up: Improve internal controls to ensure timely submission of financial data in the future.

Finding Text

2023-001 Unaudited Submission Criteria Financial Data Schedule (FDS) submission for unaudited financials are due within 2 months after the fiscal year end (24 CFR section 5.801). Condition Management missed the deadline for its unaudited REAC FDS submission. Context The Authority 's unaudited FDS submission was due on December 15th, 2023. The Authority did not submit the submission until December 28th, 2023. Cause Management misinterpreted the deadline for the unaudited FDS submission for PHA's. Effect The Authority is not in compliant with the reporting guidelines outlined in the HCV compliance supplement. Recommendations The Authority needs to improve its internal controls over financial reporting by submitting its financial data on a timelier basis. Management Views Management agrees with the finding, see Management's corrective action plan.

Corrective Action Plan

Criteria: Financial Data Schedule (FDS) submission for unaudited financials are due within 2 months after the fiscal year end (24 CFR section 5.801) Condition: Management missed the deadline for its unaudited REAC FDS submission. Context: The Authority’s unaudited FDS submission was due on December 15th 2023. The Authority did not submit the submission until December 28th, 2023. Management Response: Management received guidance from HUD Chicago Office of Public Housing, that Section 8 only housing authorities have a 30-day grace period to submit unaudited FDS submission. Which is December 31st. In the future we will submit within the 15-day grace period.

Categories

HUD Housing Programs Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 404190 2023-002
    Significant Deficiency
  • 404191 2023-001
    Significant Deficiency
  • 404192 2023-002
    Significant Deficiency
  • 980631 2023-001
    Significant Deficiency
  • 980632 2023-002
    Significant Deficiency
  • 980633 2023-001
    Significant Deficiency
  • 980634 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $7.62M
14.879 Mainstream Vouchers $111,780
14.896 Family Self-Sufficiency Program $75,907