Finding Text
Finding 2022-002: Late Submission of Financial Statements to FAC and REAC (Material
Weakness)
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Title: Housing Voucher Cluster
Federal Assistance Listing Number: 14.871/14.879
Compliance Requirement: Reporting
Criteria: Per 2 CFR Section 200.512, the Authority is required to submit the Data Collection
Form and the rest of the reporting package within the earlier of 30 calendar days after receipt of
the auditor’s report or nine months after the end of the audit period. Per 2 CFR Section 902.33,
the Authority is required to submit its audited Financial Data Schedule (FDS) and audited
financial statements no later than 9 months after the PHA’s fiscal year end.
Condition: The Authority did not submit its audited financial statements to the Federal Audit
Clearinghouse and to REAC by the required due dates.
Context: PHAs are required to submit an unaudited FDS to REAC within 3 months of fiscal
year end and are required to submit an audited FDS and audited financial statements to REAC
within 9 months of year end, as well as submit audited financial statements and a Data Collection
Form to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of
auditor’s report or nine months after the end of the audit period. The Authority did not submit its
audited FDS and financial statements by the required due dates
Effect: The Authority did not submit its audited financial statements to the Federal Audit
Clearinghouse or to REAC by the required due date.
Cause: The Authority did not have the proper controls in place to ensure the audited financial
statements were submitted on time.
Repeat Finding: This finding is a repeat finding.
Recommendation: The Authority should review and enhance its policies, procedures, and
internal controls to ensure the financial reporting package and audited financial statements are
submitted by the required due date.
Views of Responsible Officials: The Authority agrees with the finding.