Finding 405945 (2023-002)

Significant Deficiency

Requirement

Questioned Costs

Year

2023

Accepted

2024-07-02

Audit: 311505

Organization: Cleveland Housing Authority (TN)

Auditor: Scmo

AI Summary

Core Issue: The Authority failed to submit the required GAAP-based unaudited financial information to HUD on time for the 2023 audit.
Impacted Requirements: This violation pertains to 24 CFR section 5.801, which mandates timely electronic submissions of financial reports.
Recommended Follow-Up: Management should establish procedures to ensure future compliance with reporting deadlines.

Finding Text

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 requirement was not met for the 2023 audit During the audit, the auditor noted the unaudited FDS was filed but filed after the required due date. Due to the Authority's RAD transaction and the related audits to the new entities, the Authority was unable to complete the 2023 unaudited submission timely. The Authority was in violation of the Federal regulations relating to report submissions. We recommend that Management implement procedure to ensure compliance with the above regulations. Management Agrees

Corrective Action Plan

As stated in the audit report, Cleveland Housing Authority disposed of a significant number of public housing units for the purpose of RAD conversion. Due to the conversion and disposal of assets, the FDS unaudited submission was inaccurate in the statement of assets. AN adjusting entry has been made to correct the inaccuracy. The individual responsible for preparing and submitting for the unaudited submission is Cleveland Housing Authority's CFO, Michael Lloyd. Mr. Llyod will review the information prior to submission to ensure that all entries are stated correctly. He will also ensure that the required unaudited submission be completed and entered into the system prior to the stated deadline. The ED will be responsible for verifying that the required deadlines are being met. We trust that this corrective action plan is sufficient to correct the audit findings for the fiscal year ending December 31, 2024.

Other Findings in this Audit

982387 2023-002

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
14.872	Public Housing Capital Fund	$4.28M
14.871	Section 8 Housing Choice Vouchers	$1.67M
14.850	Public and Indian Housing	$1.10M