Finding 404773 (2023-002)

Significant Deficiency

Requirement

Questioned Costs

Year

2023

Accepted

2024-07-01

Audit: 311177

Organization: Housing Authority of the Birmingham District (AL)

Auditor: Rubino & Company Chartered

AI Summary

Core Issue: The Authority missed deadlines for submitting audited financial statements 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: Enhance policies and internal controls to ensure timely submission of all required financial documents.

Finding Text

Finding 2023-002: Late Submission of Financial Statements to FAC and REAC (Significant Deficiency) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Public and Indian Housing, Capital Fund Program Federal Assistance Listing Number: 14.850/14.872 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 unaudited FDS to REAC within 3 months of fiscal year end and are required to submit an audited FDS and audited financial statements to REAC within 9 months of year end, as well as submit audited financial statements and a Data Collection Form to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of auditor’s report or nine months after the end of the audit period. The Authority did not submit its audited FDS and financial statements by the required due dates Effect: The Authority did not submit its audited financial statements to the Federal Audit Clearinghouse or to REAC by the required due date. Cause: The Authority did not have the proper controls in place to ensure the audited financial statements were 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 2023-002: 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. Action taken in response to finding: The Authority will implement a year-end closing process to ensure all accounts are properly reconciled. Due to the delay in receiving the prior year audits, the Agency was unable to submit a timely and accurate current year audit. The Authority has now recently filled several accounting positions, implemented multiple internal controls, policy and procedures over financial reporting as well as changed audit firms to increase financial efficiencies and timeliness. Name of the contact person responsible for corrective action: Dontrelle Young Foster, Executive Director Planned completion date for corrective action plan: We expect to have the finding resolved by March 31, 2025.

Other Findings in this Audit

404774 2023-002

Significant Deficiency
981215 2023-002

Significant Deficiency
981216 2023-002

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
14.850	Public and Indian Housing	$30.88M
14.872	Public Housing Capital Fund	$7.12M
14.879	Mainstream Vouchers	$880,731
14.871	Section 8 Housing Choice Vouchers	$588,044
14.870	Resident Opportunity and Supportive Services - Service Coordinators	$257,812
14.877	Public Housing Family Self-Sufficiency Under Resident Opportunity and Supportive Services	$199,748
14.249	Section 8 Moderate Rehabilitation Single Room Occupancy	$54,079