Finding Text
Finding number: 2023-001
Federal Assistance Listing No: 14.139
Program name: Mortgage Insurance Rental Housing in Urban Renewal Areas
Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: n/a
Grant number: n/a
Federal award year: 2023
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, 2022 Single Audit reporting package to the Federal Clearinghouse within the required time period.
Cause: M. Carter Plaza’s 2022 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 turnover in the Fiscal Department beginning in 2021. Work was delayed as new staff required training on processes in conjunction with working through a large backlog of work in the Department that was necessary to complete in order to prepare the Financial Statements for audit. In addition to adapting its processes in the Fiscal Department to ensure the continuance of proper separation of duties and adherence to policies and procedures during staff transitions, Management is developing procedures to hire, train, and retain Fiscal Staff to help stabilize the department to ensure the work can continue in the event of unexpected staff turnover. Management anticipates that these measures will have a positive impact on the timeliness of future audit processes.