Finding 554903 (2024-001)

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Requirement
L
Questioned Costs
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Year
2024
Accepted
2025-04-11

AI Summary

  • Core Issue: The Corporation failed to submit the Data Collection Form (DCF) and REAC filing on time, violating federal reporting requirements.
  • Impacted Requirements: Timely submission of the DCF within 30 days of the audit report and the REAC filing by March 31, 2024, is mandated by the Uniform Guidance.
  • Recommended Follow-Up: Ensure timely submission of the DCF and REAC filing to avoid potential impacts on future funding from HUD.

Finding Text

Reporting – Noncompliance (Control Deficiency) Information on Federal Program: U.S. Department of Housing and Urban Development - Project Based Rental Assistance (PBRA) (Section 8 Project-Based Cluster), Award Listing Number 14.195 Criteria: According to the Uniform Guidance, recipients must submit a data collection form (DCF) that states whether the audit was completed and provide information about the auditee, its federal programs, and the results of the audit submitted within the earlier of 30 days after receipt of the auditor’s report, or nine months after the end of the audit period. Further, the Corporation is required to submit an owner-certified submission of the audited financial statements to the U.S. Department of Housing and Urban Development through the Real Estate Assessment Center (REAC filing) which is due on March 31, 2024. Condition: During our audit, we noted that the DCF for the reporting period ended June 30, 2024 was not filed with the Federal Audit Clearinghouse timely. Further, the REAC filing to the U.S. Department of Housing and Urban Development was also not timely submitted. Cause: Due to the timing of the annual financial statements being completed, the Corporation could not submit the DCF and REAC filing by the required timeline. Effect: The Corporation not submitting the DCF and REAC filing timely could affect future funding from the U.S. Department of Housing and Urban Development. Questioned Costs: None noted. Context: This was a condition noted per review of the Corporation’s compliance with the reporting requirements. Recommendation: We recommend that the Corporation submit the DCF and REAC filing timely. Views of Responsible Officials: The Corporation agrees with the federal award finding identified in the audit. The Corporation’s response to this finding is described in the accompanying management’s planned corrective actions.

Corrective Action Plan

Finding Number: 2024-001 Reporting – Noncompliance (Control Deficiency) Programs: U.S. Department of Housing and Urban Development - Project Based Rental Assistance (PBRA) (Section 8 Project-Based Cluster), Award Listing Number 14.195. Planned Corrective Action: The Corporation acknowledges that the 2024 data collection form and REAC filing were not filed timely. The planned correction plan is to file the 2024 data collection form and REAC filing upon the issuance of the Uniform Guidance financial statements and ensure that future data collection forms and REAC filing are submitted timely. Person Responsible: A’isha Torrence, Chief Financial Officer Expected Completion Date: June 2025

Categories

Reporting HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.195 Project-Based Rental Assistance (pbra) $2.54M