Finding Text
Finding 2023-002 - U.S. Department of Housing and Urban Development, Housing Voucher Cluster, Assistance Listing #14.871/14.879
Statement of Condition: For the year ended June 30, 2022, the Organization did not submit their audited financial statements to HUD by the required deadline. For the year ended June 30, 2023, the Organization did not submit their unaudited or audited financial statements to HUD by the required deadline.
Criteria: The Uniform Financial Reporting Standards (24 CFR Section 5.801) require the Organization to submit timely GAAP-based unaudited and audited financial information electronically to HUD via the Financial Assessment Sub-System (FASS-PH).
Cause of Condition: Management oversight and lack of Finance Officer in place during period under audit.
Effect of Condition: Noncompliance with HUD requirements.
Context: A test was performed to review the prior year submission of the audited financial statement submission to HUD for the year ended June 30, 2022 noting the audited financial statements had not been submitted to HUD. A test was performed to review the unaudited financial statement submission to HUD for the year ended June 30, 2023 noting the unaudited financial statement submission to HUD had not been submitted to HUD.
Questioned Costs: N/A
Recommendation: We recommend the Organization submit their financial report as soon as possible. Furthermore, we recommend that the Organization consider additional training related to HUD reporting requirements.
Reporting Views of Responsible Officials and Corrective Action Plan: Management agrees with the above finding and will submit their financial information for the year ended June 30, 2022 and 2023. Management will re-evaluate its policies and procedures to determine any necessary changes.