Finding 561278 (2023-003)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2025-05-22

AI Summary

  • Core Issue: The Authority missed deadlines for submitting critical HUD reports, marking a shift from its usual compliance.
  • Impacted Requirements: Timely submission of FASSPHA, SF-SAC, and SEMAP reports is essential for compliance and federal funding eligibility.
  • Recommended Follow-Up: Focus on recruiting and training staff, create a contingency plan for personnel changes, and streamline internal reporting processes.

Finding Text

2023‐003 HUD Required Reporting Questioned Costs None It is recommended that the Authority: (1) Prioritize the recruitment and training of new staff to fill critical roles, ensuring they are well‐versed in HUD reporting requirements; (2) Establish a contingency plan for maintaining continuity of operations in the event of key personnel turnover or unavailability; and (3) Revise and streamline internal reporting processes to improve efficiency and reliability in meeting HUD's reporting deadlines. Management Views Management acknowledges the audit findings and is committed to taking corrective actions. US Department of Housing and Urban Development Program Name Housing Voucher Cluster ALN (s) L Reporting Criteria HUD regulations and federal requirements mandate timely submission of the Financial Assessment Subsystem for Public Housing Agencies (FASSPHA), the Data Collection Form (SF‐SAC) for the Single Audit, and the Section Eight Management Assessment Program (SEMAP) reports. These submissions are critical for ensuring compliance, enabling oversight, and facilitating the allocation of federal funding. Condition It was identified during the audit that the Authority did not meet the prescribed deadlines for submitting the FASSPHA, and SF‐SAC reports to federal agencies. This delay in reporting has been noted for the first time in the 2021 audit findings. Context This lapse was identified against a backdrop of the Authority traditionally maintaining a good track record with reporting. The recent delays mark a departure from their usual compliance practices and have occurred amidst organizational changes and challenges, including staff turnover and procedural adjustments within the finance department. Cause The failure to meet reporting deadlines can be attributed to a combination of factors, including major staff turnover, which led to a loss of institutional knowledge and expertise critical for the preparation and submission of these reports. These challenges were compounded by inefficiencies in the Authority’s internal processes for report preparation and submission. Effect The failure to submit these reports on time undermines the Authority’s compliance with federal regulations, potentially affecting its eligibility for future funding and leading to reputational damage. It may also delay financial and operational decisions by HUD that depend on the analysis of these reports. Recommendation: It is recommended that the Authority: (1) Prioritize the recruitment and training of new staff to fill critical roles, ensuring they are well‐versed in HUD reporting requirements; (2) Establish a contingency plan for maintaining continuity of operations in the event of key personnel turnover or unavailability; and (3) Revise and streamline internal reporting processes to improve efficiency and reliability in meeting HUD's reporting deadlines. Management Views Management acknowledges the audit findings and is committed to taking corrective actions.

Corrective Action Plan

Prior RHA administrative staff were not getting the PHA’s Single Audit completed nor submitted by the deadline. RHA was 3 years behind when the new CEO took over on March 31, 2023. FY2020, FY2021 and FY2022 were not completed and submitted. By the time that these three were caught up, completed and submitted, that pushed FY2023 Audit to be late. The audit for FY2023 should be completed by the end of April 2025 and then we will be on task to start FY2024 in May and completed by the deadline of September 30, 2025. Then, RHA will stay on task and get these completed within its deadline timeline.

Categories

HUD Housing Programs Allowable Costs / Cost Principles Eligibility Reporting

Other Findings in this Audit

  • 561277 2023-002
    Significant Deficiency Repeat
  • 561279 2023-004
    Material Weakness
  • 561280 2023-005
    Material Weakness
  • 561281 2023-002
    Significant Deficiency Repeat
  • 561282 2023-003
    Significant Deficiency Repeat
  • 561283 2023-004
    Material Weakness
  • 561284 2023-005
    Material Weakness
  • 561285 2023-002
    Significant Deficiency Repeat
  • 561286 2023-003
    Significant Deficiency Repeat
  • 561287 2023-004
    Material Weakness
  • 561288 2023-005
    Material Weakness
  • 1137719 2023-002
    Significant Deficiency Repeat
  • 1137720 2023-003
    Significant Deficiency Repeat
  • 1137721 2023-004
    Material Weakness
  • 1137722 2023-005
    Material Weakness
  • 1137723 2023-002
    Significant Deficiency Repeat
  • 1137724 2023-003
    Significant Deficiency Repeat
  • 1137725 2023-004
    Material Weakness
  • 1137726 2023-005
    Material Weakness
  • 1137727 2023-002
    Significant Deficiency Repeat
  • 1137728 2023-003
    Significant Deficiency Repeat
  • 1137729 2023-004
    Material Weakness
  • 1137730 2023-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $1.55M
14.879 Mainstream Vouchers $1.25M