Finding Text
Finding number: 2022-001
Federal Assistance Listing No: 14.139 and 14.195
Program name: Mortgage Insurance Rental Housing in Urban Renewal Areas,
Section 8 Housing Assistance Payments – Special Allocations
Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: n/a
Grant number: n/a
Federal award year: 2022
Finding type: Significant deficiency and non-compliance
Compliance requirement: Reporting
Questioned costs: n/a
Repeat finding: Yes
Criteria: In accordance with the requirements of CFR §200.512, the audit shall be completed and the data collection form and reporting package shall be submitted to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor’s report, or nine months after the end of the audit period.
Condition: M. Carter Plaza did not electronically submit its June 30, 2021 Single Audit reporting package to the Federal Clearinghouse within the required time period.
Cause: M. Carter Plaza’s 2021 accounting records were not closed in a timely matter and the audit was not completed prior to the data collection form due date.
Effect: M. Carter Plaza did not comply with CFR §200.512. The late submission results in non-compliance for all federal programs.
Audit Recommendation: We recommend that management implement procedures to ensure that all required reporting is submitted in a timely manner and in accordance with CFR §200.512 deadlines.
Management’s Response: The organization experienced significant disruptions in the Fiscal Department with regards to staffing beginning in September of 2019 which were exacerbated by the onset of COVID-19 and related impacts and restrictions on the work environment in March of 2020 which continue until today. These impacts had a significant impact on Management’s ability to respond to the audit which was conducted almost entirely remotely. Management is adapting its processes in the Fiscal Department to better adapt to the new remote work environment while continuing to ensure proper separation of duties and adherence to policies and procedures, as well as training and integrating new staff in the Fiscal Department and the employment of outside experts when appropriate to ensure the adaptation of the Fiscal Department to the remote nature of its work and to have a positive impact on the timeliness of future audit processes.