Finding 496892 (2023-002)

Criteria: Financial Data Schedule (FDS) submission for unaudited financials are due within 2 months after the fiscal year end; FDS audited submissions are due 9 months after fiscal year end; and the Federal Audit Clearing House reporting package is due 30 days after receipt of the auditors reports or 9 months after the end of the fiscal year (24 CFR section 5.801). Condition: Management missed deadlines for the audited submissions and missed the deadline for completing the Federal Audit Clearing House reporting package. Context: Significant delay in the audit process resulted from these journal entries identified in finding 2023-001. Cause: Management was late in submitting its financial information to the auditor. This in part was caused by personnel changes that limited its ability to produce timely and reliable financial data. Effect: The Authority will receive a lower SEMAP score and will be classified as a troubled housing authority which could impact its subsidies. Recommendations: The Authority needs to improve its internal controls over financial reporting by submitting its financial data on a timelier basis. Views of responsible officials and planned corrective action: : The Authority agrees with this finding and has outlined a plan of action to address Audit Finding 2023-002. The Authority has implemented several activities that are designed to fully address the finding and prevent any reoccurrence in the future. These actions include: An Assistant Finance Director and a new Staff Accountant have been hired to ensure timely preparation of financial statements. New financial software has been implemented along with a new chart of accounts that provides for more consistent reporting and year end close. The process of internal reporting will be monitored to ensure timely submission of financial reports.