FAC Explorer

Finding 564319 (2024-002)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-06-10
Audit: 358478
Organization: Housing Authority of the Birmingham District (AL)
Auditor: Rubino & Company Chartered

AI Summary

  • Core Issue: The Authority failed to submit its audited financial statements on time to both the Federal Audit Clearinghouse and REAC.
  • Impacted Requirements: Compliance with 2 CFR Sections 200.512 and 902.33, which mandate timely submission of financial reports.
  • Recommended Follow-up: Enhance policies and internal controls to ensure timely submission of all required financial documents.

Finding Text

Finding 2024-002: Late Submission of Financial Statements to FAC and REAC (Significant Deficiency) Federal Agency: U.S. Department of Housing and Urban Development Federal Program Title: Housing Voucher Cluster Federal Assistance Listing Number: 14.871/14.879 Compliance Requirement: Reporting Criteria: Per 2 CFR Section 200.512, the Authority is required to submit the Data Collection Form and the rest of the reporting package within the earlier of 30 calendar days after receipt of the auditor’s report or nine months after the end of the audit period. Per 2 CFR Section 902.33, the Authority is required to submit its audited Financial Data Schedule (FDS) and audited financial statements no later than 9 months after the PHA’s fiscal year end. Condition: The Authority did not submit its audited financial statements to the Federal Audit Clearinghouse and to REAC by the required due dates. Context: PHAs are required to submit an audited FDS and audited financial statements to REAC within 9 months of year end, as well as submit audited financial statements and a Data Collection Form to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of auditor’s report or nine months after the end of the audit period. The Authority did not submit its audited FDS and financial statements by the required due dates. Effect: The Authority did not submit its audited financial statements to the Federal Audit Clearinghouse or to REAC by the required due date. Cause: The Authority did not have the proper controls in place to ensure the audited financial statements were submitted on time. Repeat Finding: This is a repeat finding. Recommendation: The Authority should review and enhance its policies, procedures, and internal controls to ensure the financial reporting package and audited financial statements are submitted by the required due date. Views of Responsible Officials: The Authority agrees with the finding.

Corrective Action Plan

Along with FY22 financial data changes to the Financial Data Schedule, and changes to the FY23 Financial Data Schedule and the issuance of FY23 audit on March 21, 2025, caused a delay in the finalization of the FY24 Financial Data Schedule submission. With the completion of the HUD requested changes, the Agency anticipates future submissions to be timely and accurate without continuous changes to balance sheet accounts. Additionally, The Authority has restructured the accounting team and implemented multiple internal controls, policy and procedures over financial reporting. To ensure a timely audit, the finance team and the auditors maintain clear and detailed communication throughout the entire process. Additionally, confirm that the auditors have sufficient capacity to complete the audit within the agreed-upon timeline.

Categories

HUD Housing Programs Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 564320 2024-003
    Significant Deficiency
  • 564321 2024-002
    Significant Deficiency Repeat
  • 564322 2024-003
    Significant Deficiency
  • 564323 2024-002
    Significant Deficiency Repeat
  • 564324 2024-003
    Significant Deficiency
  • 1140761 2024-002
    Significant Deficiency Repeat
  • 1140762 2024-003
    Significant Deficiency
  • 1140763 2024-002
    Significant Deficiency Repeat
  • 1140764 2024-003
    Significant Deficiency
  • 1140765 2024-002
    Significant Deficiency Repeat
  • 1140766 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.850 Public Housing Operating Fund $28.99M
14.872 Public Housing Capital Fund $14.23M
14.879 Mainstream Vouchers $938,474
14.871 Section 8 Housing Choice Vouchers $927,326
14.889 Choice Neighborhoods Implementation Grants $355,232
17.274 Youthbuild $303,079
14.877 Public Housing Family Self-Sufficiency Under Resident Opportunity and Supportive Services $281,724
14.870 Resident Opportunity and Supportive Services - Service Coordinators $168,719
32.011 Affordable Connectivity Outreach Grant Program $51,684