Finding Text
2023-001 - Internal Control Over Compliance, and Compliance with Reporting U.S. Department of Housing and Urban Development Housing Voucher Cluster: Mainstream Vouchers - CFDA No.14.879 Criteria: Internal controls should be in place to ensure that the Organization electronically submits unaudited and audited financial information to the U.S. Department of Housing and Urban Development ("HUD") via the Real Estate Assessment Center ("REAC") in accordance with HUD regulations (24 CFR 5.801 - Uniform Financial Reporting Standards). Condition: The Organization did not electronically submit to HUD via REAC its fiscal 2023 unaudited financial information within 60 days after its fiscal year end, or its audited financial information within 9 months after its fiscal year end. Cause: The Organization's past REAC submission of unaudited financial information was rejected and remains unresolved. As a result, submissions of audited financial information and subsequent years' unaudited and audited financial information could not be done because of the unresolved rejection of the original unaudited financial information. Context: The Organization was advised in 2014 by a HUD analyst that the past due unaudited and audited financial information must be submitted sequentially and chronologically. When attempting to resubmit the 2010 unaudited financial information with explanations in September 2016, the Organization encountered a technical error within the REAC system and was unable to complete the resubmission. The Organization's outside fee accountant contacted both the current assigned HUD analyst and the HUD Technical Assistance Center ("TAC") for assistance, but a solution was not provided by TAC. Effect: Noncompliance could result in the Organization being denied reimbursement of program expenditure, or other sanctions and penalties by HUD. Questioned Costs: None reported. Identification of a Repeat Finding: This is a repeat finding from previous audits, finding No. 2009-003, No. 2016-001, No. 2017-001, No. 2018-001, No. 2019-001, No. 2020-001, No. 2021-001 and No. 2022-001. Recommendation: The Organization must resolve the REAC system technical issues with HUD, and submit all past due filings. Procedures must then be implemented to ensure the unaudited and audited financial statements are electronically submitted to HUD via REAC on a timely basis going forward. Views of Responsible Officials of Auditee: The Organization agrees with the finding and will again reach out to HUD to seek assistance to resolve these technical issues affecting the resubmission of the 2010 unaudited financial information, so that all past due submissions can be filed.