Finding 555897 (2024-001)

Other Compliance Matters 2024-001 U.S. Department of Housing and Urban Development (“HUD”) – Assistance Listing No. 14.182 – Section 8 Housing Assistance Payments Program -- Reporting Condition The HUD REAC filing was not completed within the prescribed time frame. Criteria Per the Compliance Supplement for the Section 8 Housing Assistance Payments Program above, the Center was to submit the annual financial statement to HUD Real Estate Assessment Center (REAC) within ninety days of its fiscal year end. Questioned Costs None Context The REAC filing was late. Cause There was a fire in the Project's office resulting in the temporary relocation of the office and records. These unforeseen circumstances resulted in a delay in accessing the information required to complete the audit. Effect Filing required forms untimely makes it more challenging for HUD to monitor and administer its programs and the recipients of grant funding and could jeopardize program funding. Recommendation Senior management should develop a contingency plan to ensure necessary accounting systems continue to function during the occurrence of unexpected events.