Finding 4302 (2021-005)

ALN 14.871 – Housing Voucher Cluster – Reporting Condition and Criteria: The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards at 2 CFR 200 (Uniform Guidance) requires the Data Collection Form to be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. Additionally, a nonfederal entity that expends $750,000 or more during the nonfederal entity's fiscal year in Federal awards must have a single or program specific audit conducted that year in accordance with the provisions of the Uniform Grant Guidance, Part 200, "Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, Subpart F, Audit Requirements". The federal single audit must be completed and the data collection form and the reporting package (as defined in the Uniform Grant Guidance), be submitted within 30 days after receipt of the auditors' report or nine months after year end, whichever comes earlier. Pursuant to the reporting requirements of 24 CFR, Part 5, Subpart H, entities receiving HUD financial assistance, must electronically submit audited financial and other information to the Real Estate Assessment Center ("REAC") no later than nine months after the Housing Authority's fiscal year end. Amount of Questioned Costs: None. Context: The fiscal year 2021 audit was not filed within nine months of fiscal year end due to prior management not completing their audit in a timely manner. Cause: Prior management's process for completing the audit was not adequate in filing the audit in a timely manner. Effect: The Housing Authority is not considered a low-risk auditee for fiscal year 2022 and must meet the 40% coverage rule for testing federal expenditures under the Uniform Guidance requirements. Auditor’s Recommendation: We recommend that the new management submit the annual financial statement audit and single audit, as applicable, in a timely manner and to ensure that the Data Collection Form is filed by the due date required in the Uniform Guidance Grantee Response: The Chief Executive Officer agrees with the finding and will follow the Auditor's recommendations.