Finding Text
2022-002 – Reporting
U.S. Department of Housing and Urban Development
14.871 – Housing Choice Vouchers Cluster
L. Reporting – Compliance Finding – Significant Deficiency
Condition: During review of the Housing Choice Voucher program, RBT noted that the PHA did not submit timely GAAP-based unaudited and audited financial information to HUD after year end, within two and a half months for unaudited, and nine months for audited.
Criteria: As a condition of receiving federal awards, the PHA agrees to comply with laws, regulations, and the provisions of grant agreements and contracts, and to also maintain internal controls to provide reasonable assurance of compliance with these requirements.
Cause: The PHA did not have appropriate audit ready information/documentation in place in order for the unaudited FDS submission and audit to be conducted in a timely manner.
Effect: Potential loss of funding due to noncompliance.
Questioned Costs: None identified.
Perspective: This is a systemic issue.
Repeat Finding: Not a repeat finding.
Recommendation: We recommend that the PHA prepares all required information/documentation to ensure that the Authority can submit the unaudited and audited financial information to HUD timely.
Auditee’s Response: See corrective action plan.