Finding 565514 (2022-002)

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Requirement
P
Questioned Costs
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Year
2022
Accepted
2025-06-20

AI Summary

  • Issue: PHDC missed the March 31, 2023 deadline for the federal single audit, leading to late submissions.
  • Impacted Requirements: This affects compliance with federal regulations and raises concerns about the accuracy of reported expenditures.
  • Follow-Up: PHDC should establish a monthly and annual reconciliation process for federal, state, and local expenditures to ensure timely and accurate audits.

Finding Text

Program: All Federal, State and Local Programs Criteria: PHDC is required to submit the federal single audit data collection form and reporting package by regulatory deadlines. Management is also responsible for establishing and maintaining effective internal control over preparation and completion of the schedules of expenditures of federal awards and state and local financial assistance. Condition: PHDC’s federal single audit was not completed within the single audit reporting deadline of March 31, 2023. Various audit adjustments were also made to the original schedule provided. Cause: Several staff members who accounted for grants during the period under audit are no longer with PHDC and a general ledger system conversion took place during this time. PHDC has had to sort through the antiquated accounting system and interpret the changeover data with new staff. Effect: Late submission of the single audit data collection form and reporting package to the federal clearinghouse. An opportunity exists for possible misstatement of expenditures of federal, state and local awards and noncompliance with compliance requirements. Recommendation: We recommend that PHDC develop a monthly and annual process to reconcile its applicable federal, state and local expenditures against DHCD records to ensure accurate and timely completion of schedules and audit. Management’s Response to Finding: PHDC is in agreement with this finding and will complete and implement a corrective action plan.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.023 Emergency Rental Assistance Program $164.63M
14.218 Community Development Block Grants/entitlement Grants $12.00M
93.568 Low-Income Home Energy Assistance $3.71M
14.239 Home Investment Partnerships Program $577,354