Core Issue: The Authority missed the deadline for submitting audited financial data to the FDS system.
Impacted Requirements: This noncompliance affects the Authority's SEMAP score and could classify it as a troubled housing authority.
Recommended Follow-Up: Improve internal controls and streamline financial reporting processes to ensure timely submissions.
Finding Text
Program Name Housing Choice Vouchers Noncompliance Significant Deficiency
ALN Number 14.871 L Reporting
2022-004 Financial Assessment Subsystem
Criteria Financial Data Schedule (FDS) audited submissions are due 9 months after fiscal year end (24 CFR section 5.801).
Condition Management missed the deadline for the audited submission to the FDS system.
Context The audited numbers were not available until 2024.
Cause The failure to meet the reporting deadline can be attributed to the audit not being completed within the 9 month required period after the fiscal year end.
Effect The Authority will receive a lower SEMAP score and will be classified as a troubled housing authority which could impact its subsidies.
Recommendations The Authority needs to improve its internal controls over financial reporting by submitting its financial data on a timelier basis and modifying its procedures to minimize its reliance on external spreadsheets for financial information.
Management Views Management agrees.
Corrective Action Plan
he Executive Director has implemented procedures for the procurement of an auditor to ensure the Financia Data Schedule is filed within nine months after the conclusion of the fiscal year.
Name of Responsible Person: Tami Lucia, Executive Director
Implementation date: April 2024
Categories
HUD Housing ProgramsReportingSignificant DeficiencyInternal Control / Segregation of Duties