Finding Text
Finding 2019-005 – Reporting – Material Weakness
Name of Federal Agency: Department of Housing and Urban Development
Federal Program Name and Assistance Listing Number: Supportive Housing for Persons
with Disabilities (Section 811), Assistance Listing 14.181
Federal Award Identification Number and Year: N/A and 1997
Name of Pass-through Entity: N/A
Criteria
The OMB has issued Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (commonly called "Uniform Guidance"), which requires
institutions of higher education and nonprofit institutions that expend $750,000 or more in federal
funds to annually conduct a detailed, organization-wide audit that complies with the established
criteria. Additionally, the Uniform Guidance reporting package and the data collection form are
required to be submitted to the Federal Audit Clearinghouse (“FAC”) the earlier of 30 days after the
receipt of the auditors reports or nine months after the end of the audit period, unless a longer
period of time was agreed to in advance by the cognizant or oversight agency for the audit.
Condition
A detailed, organization-wide audit that complies with Uniform Guidance established criteria was
not timely completed and submitted to the FAC.
Cause
Management did not have internal controls in place to allow for a timely audit which resulted in
delays in timely submitting the report to FAC.
Effect or Potential Effect
A detailed, organization-wide audit that complies with the established criteria was not timely
completed resulting in HES not being in compliance with Uniform Guidance requirements.
Questioned Costs
None.
Context
See the context of the finding detailed in the condition section above.
Identification as a Repeat Finding
This finding is not a repeat finding.
Recommendation
Management should ensure timely completion of a Uniform Guidance audit, as required.
Auditor Noncompliance Code: S - Internal control deficiency
Finding Resolution Status: Unresolved.
Views of Responsible Officials
HES agrees with the finding and the auditor's recommendations have been adopted.