Finding Text
2023 – 008: Financial Reporting
Federal agency: U.S. Department of Housing and Urban Development
Federal program title: Housing Choice Voucher Cluster
Assistance Listing Number: 14.871, 14.879
Award period: January 1, 2023 – December 31, 2023
Type of Finding:
• Internal Control, Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria or specific requirement: The PHA is required to submit an unaudited Financial Information within 2 months and audited annual Financial Report within 9 months to HUD electronically via the FASS-PH system.
Condition: During our testing, we noted the Authority failed to comply with the requirements of the financial reporting as stated in the criteria section of this finding.
Questioned Costs: Known - None | Likely - Undeterminable
Context: Unaudited REAC was submitted after the required two-month deadline. The sample size was based on guidance from chapter 11 of the AICPA Audit Guide, Government Auditing Standards and Single Audits.
Cause: The Authority's system of internal controls included in the policies and procedures failed to identify the noncompliance as described in the condition section of this finding.
Effect: The failure of the internal controls has resulted in noncompliance with the stated criteria.
Repeat Finding: No
Recommendation: We recommend that the Authority review its system of internal control related to the policies and procedures in place to mitigate the risk of noncompliance with the requirements of the stated criteria.
Views of responsible officials: There is no disagreement with the audit finding.