Finding 51942 (2022-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-09-04
Audit: 45321
Organization: Dupage Housing Authority (IL)

AI Summary

  • Core Issue: The Authority failed to submit audited financial statements on time to the Federal Audit Clearinghouse and REAC.
  • Impacted Requirements: Compliance with 2 CFR Sections 200.512 and 902.33 regarding timely submission of financial reports.
  • Recommended Follow-up: Enhance policies and internal controls to ensure timely submission of financial reporting packages.

Finding Text

Finding 2022-02: Late Submission of Financial Statements to FAC and REAC (Significant Deficiency) 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 is not 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.

Corrective Action Plan

Finding 2022-02: Late Submission of Financial Statements to FAC and REAC (Significant Deficiency) Corrective Action Plan: DuPage Housing Authority (DHA) has existing controls in place, however, DHA had to seek an emergency authorization for a 60-day waiver extension for 2 CFR ? 200.512(a)(1) Report Submission and the Financial Reporting Requirements per 24 CFR ? 902.33(b) for the FY2022 audit. Regulatory waivers provide relief from HUD requirements upon a finding of good cause, subject to statutory limitations, per 24 CFR 5.110. The DHA IL101 general audit submission date is March 31, 2023. DHA expected to have the financial audit submitted by April 30, 2023, as a result of the following reasons: ? Due to the abrupt quitting of the previously procured audit service provider, on February 7, 2023. DHA had to enter into an emergency Intergovernmental Agreement authorizing DuPage Housing Authority (DHA) to share the RFP process for independent audit service provider, Rubino and Company on February 27, 2023. The DHA IL101 HUD audit report submission per 2 CFR ? 200.512(a)(1) audit must be completed, and the data collection form described in paragraph (b) of this section and reporting package described in paragraph (c) of this section must be submitted within the earlier of 30 calendar days after receipt of the auditor's report(s), or nine months after the end of the audit period. The current DHA IL101 audit report submission was due March 31, 2023. ? The 60-Day Waiver extension was submitted to HUD for 2 CFR ? 200.512(a)(1) Report Submission and the Financial Reporting Requirements per 24 CFR ? 902.33(b) for the FY2022 audit will allow DHA an opportunity to avoid adverse effects including but not limited to: o Noncompliance of the audited financial data to HUD on an annual basis o Noncompliance of the annual audit being prepared in accordance with Generally Accepted Accounting Principles (GAAP), as further defined by HUD in supplementary guidance. o Noncompliance of the audited financial data being submitted electronically in the format prescribed by HUD using the Financial Data Schedule (FDS). ? HUD?s National Headquarters went through a recent organizational change; thus, delaying the approval process for the 60-dayextension waiver for 2 CFR ? 200.512(a)(1) Report Submission and the Financial Reporting Requirements per 24 CFR ? 902.33(b) for the FY2022 audit. ? DHA received official verbal approval from HUD?s Waiver Team on May 2, 2023, but the 60- day waiver extension for 2 CFR ? 200.512(a)(1) Report Submission and the Financial Reporting Requirements per 24 CFR ? 902.33(b) for the FY2022 audit is still awaiting final signature from the new HUD Deputy Assistant Secretary. Name of Responsible Person: Cheron Corbett, Executive Director Projected Completion Date: December 31, 2023

Categories

HUD Housing Programs Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 51943 2022-003
    Significant Deficiency
  • 51944 2022-002
    Significant Deficiency
  • 51945 2022-003
    Significant Deficiency
  • 51946 2022-002
    Significant Deficiency
  • 51947 2022-003
    Significant Deficiency
  • 51948 2022-002
    Significant Deficiency
  • 51949 2022-003
    Significant Deficiency
  • 628384 2022-002
    Significant Deficiency
  • 628385 2022-003
    Significant Deficiency
  • 628386 2022-002
    Significant Deficiency
  • 628387 2022-003
    Significant Deficiency
  • 628388 2022-002
    Significant Deficiency
  • 628389 2022-003
    Significant Deficiency
  • 628390 2022-002
    Significant Deficiency
  • 628391 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.879 Mainstream Vouchers $819,506
14.871 Section 8 Housing Choice Vouchers $462,691
14.896 Family Self-Sufficiency Program $69,547