Finding Text
2023-001 - Internal Control Over Compliance, and Compliance with Reporting U.S. Department of Housing and Urban Development Section 8 Housing Choice Vouchers - CFDA No.14.871 Criteria: Internal controls should be in place to ensure that the Town 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 Town did not electronically submit to HUD via REAC its fiscal 2023 unaudited financial information within 5 months after its fiscal year end, or its audited financial information within 9 months after its fiscal year end.
Cause: The Town'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.
Effect: Noncompliance could result in the Town being denied reimbursement of program expenditure, or other sanctions and penalties by HUD.
Question Costs: None reported.
Recommendation: The Town must resolve the errors 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 Town agrees with the finding and will again reach out to HUD to seek assistance to resolve these errors, so that past due submissions can be filed.