Finding Text
Criteria - According to 2 CFR §200.512, non-federal entities must submit their audit reports, including financial information, to the Federal Audit Clearinghouse (FAC) within nine months after the end of the audit period. HUD-specific guidelines also require timely submission of financial data via the Financial Data Schedule (FDS) in the Real Estate Assessment Center (REAC) as part of the compliance requirements for entities receiving federal assistance.
Condition - The Authority did not submit its financial information for the fiscal year ended March 31, 2023, to the FAC or to HUD via the FDS by the required deadlines.
Cause - The Authority’s ongoing transition to the Yardi software platform has impacted its capacity to generate comprehensive financial information and adhere to the expected audit timelines.
Effect - The Authority is currently not meeting the reporting requirements mandated for federal awards.
Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample.
Questioned Costs - None identified.
Repeat Finding - This is not a repeat finding.
Recommendation - The Authority should work closely with Yardi representatives to address specific challenges and expedite the resolution of any system integration issues.
Management’s Response - (a) Comments on the finding and recommendation - The Authority agrees with the findings. However, the root of the issue is related to complications with the software conversion to Yardi.
(b) Action taken - The Authority has replaced Yardi with PHA-Web for its accounting software.
(c) Planned implementation date of corrective action - Completed on October 31, 2024.