Finding 43912 (2022-006)

- Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-08-29
Audit: 49697
Organization: Municipality of Las Piedras (PR)

AI Summary

  • Core Issue: The Municipality failed to submit required GAAP-based unaudited financial information to HUD for fiscal 2022, which is a repeated finding.
  • Impacted Requirements: Compliance with 24 CFR 902.33, which mandates submission of financial data within two months after the fiscal year ends.
  • Recommended Follow-Up: Enhance internal controls and training for staff, and implement a reporting calendar to ensure timely submissions of financial reports.

Finding Text

Program Findings/Noncompliance Recommendations Questioned Cost Section 8 Voucher 2022-006 FINANCIAL REPORTING NONE ALN 14.871 CONDITION: On our review of the Financial Assessment Sub-system (FASS-PH), the Municipality has not submitted the GAAP- based unaudited financial information electronically to HUD for fiscal 2022. This condition, if not corrected, may increase the risk of avoidable instances of material non-compliances with the laws and regulations applicable to the Program. This condition is a repeated finding. CRITERIA: According to 24 CFR 902.33 ?Financial Reporting Requirements?, the PHA must submit an unaudited Financial Data Schedule no later than 2 months after the PHA?s fiscal year ends. PHAs are required to submit their financial information through the FASS-PH system. CAUSE AND EFFECT: This condition occurred because the Project Administrator has not adopted adequate internal controls and procedures designed to ensure the timely submission of program reports and the lack of adequate training and supervision of the municipal employees in charge of the preparation of the aforementioned reports. RECOMMENDATION: The Project Administrator should improve existing procedures to ensure the timely submission of the financial reports in order to comply with Federal regulation. Also, the Project Administrator should consider implementing a reporting calendar to maintain all personnel aware of the reporting deadlines of each federal financial report. This will provide an additional tool to help the Municipality in complying with the federal regulation.

Corrective Action Plan

Finding Control Number: 22-06 Financial Reporting Section 8 Housing Choice Voucher Program - ALN 14.871 Response by Department of Federal Programs ? Finding Control Number 22-06: We concur with this finding. The unaudited report will be prepared and submitted to the Real Estate Assessment Center on or before August 31, 2023. The Department of Federal Programs will implement new controls and procedures to ensure these reports are prepared and submitted in a timely manner each subsequent fiscal year. Anticipated completion date: August 31, 2023 Contact person: Mr. Edjoel Cosme, Director of Federal Programs Telephone: (787) 733-2160 Email: federaleslp@gmail.com

Categories

HUD Housing Programs Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $4.97M
21.019 Coronavirus Relief Fund $1.42M
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.07M
97.030 Community Disaster Loans $347,855
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $204,323
14.231 Emergency Solutions Grant Program $67,058
93.044 Special Programs for the Aging_title Iii, Part B_grants for Supportive Services and Senior Centers $34,023
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $30,941
14.241 Housing Opportunities for Persons with Aids $17,239
16.738 Edward Byrne Memorial Justice Assistance Grant Program $13,840
14.871 Section 8 Housing Choice Vouchers $1,601