Finding 42675 (2022-002)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2022-12-29
Audit: 53305
Organization: Fall River Housing Authority (RI)
Auditor: Marcum LLP

AI Summary

  • Core Issue: The Authority submitted the unaudited Financial Data Schedule (FDS) late, missing the July 15, 2022 deadline by over four months.
  • Impacted Requirements: Timely filing of financial reports is crucial for HUD's oversight and decision-making regarding public housing programs.
  • Recommended Follow-Up: The Authority should improve its year-end closing process to ensure timely submission of financial reports in the future.

Finding Text

2022-002 ? INTERNAL CONTROL OVER FINANCIAL REPORTING MATERIAL WEAKNESS/MATERIAL NONCOMPLIANCE CRITERIA Filing of financial reports. (1) For entities listed in paragraphs (a)(1) and (2) of this section, the financial information to be submitted to HUD in accordance with paragraph (b) of this section, must be submitted annually, no later than 60 days after the end of the fiscal year of the reporting period, and as otherwise provided by law (for public housing agencies, see also 24 CFR 903.33). (24 CFR 5.801(c)) CRITERIA The unaudited FDS was required to be submitted to HUD by July 15th, 2022, which includes HUD?s 15 day grace period. The Authority submitted the FDS on November 18th, 2022. CAUSE Due to a miscommunication between the Authority staff and fee accountant, the unaudited FDS report was not submitted timely. EFFECT Failure to submit information timely hinders HUD?s ability to monitor and make decisions about the programs.QUESTIONED COSTS None identified. CONTEXT All PHA?s that administer Public and Indian Housing and Capital Fund Programs are required to prepare and submit an unaudited FDS to HUD within 75 days of the end of its fiscal year. REPEAT FINDING Not a repeat finding. RECOMMENDATION We recommend that the Authority review their year end closing process to ensure that adequate procedures are in place to ensure financial reports are submitted timely.

Categories

HUD Housing Programs Material Weakness Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 42674 2022-002
    Material Weakness
  • 619116 2022-002
    Material Weakness
  • 619117 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $18.95M
14.850 Public and Indian Housing $10.52M
14.872 Public Housing Capital Fund $4.90M
14.871 Section 8 Housing Choice Vouchers Cares $1.29M
14.267 Continuum of Care Program $364,108
14.896 Family Self-Sufficiency Program $128,176
21.019 Coronavirus Relief Fund $0