Finding 565962 (2024-004)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-06-24

AI Summary

  • Core Issue: The Housing Authority missed federal reporting deadlines for financial statements, impacting compliance with HUD requirements.
  • Impacted Requirements: Timely submission of unaudited FDS information is crucial; delays can lead to penalties and reduced funding.
  • Recommended Follow-Up: The Housing Authority should prioritize adherence to all federal reporting deadlines to avoid future compliance issues.

Finding Text

2024-004 Failure to comply with federal reporting deadlines Criteria: The U.S. Department of Housing and Urban Development (HUD) requires Public Housing Agencies (PHAs) to submit financial statements within specific deadlines. Late submissions can result in deductions to a property's FASS score. HUD may impose financial penalties on property owners who consistently fail to meet reporting deadlines. Continued non-compliance may result in restrictions on program participation or funding reductions. Condition: Unaudited FDS information is due to PIH-REAC two months after the Housing Authority’s fiscal year end, which is consistent with the requirements of both the Uniform Financial Reporting Standards and OMB Uniform Guidance. PHAs must submit audited financial data within nine months of the end of their fiscal year. An Independent Public Accountant (IPA) must approve the data before it can be submitted. Questioned Costs: None. Cause: The Housing Authority did not ensure that the unaudited FDS submission was provided in a timely manner, which has cause the audited submission to also be late. Effect: The Housing Authority did not comply with the unaudited FDS submission due date. Recommendation: We recommend that the Housing Authority place greater emphasis on all federal reporting deadlines.

Corrective Action Plan

View of responsible officials and corrective action plan: Everything is being turned into any/and agencies in a timely manner. Two past employees refused to use software system and did not turn into the correct agencies in a timely manner as directed. As of September 3, 2024, both employees were dismissed for insubordination as a recommendation by the EXECUTIVE DIRECTOR with the board of directors for EPHA approval.

Categories

HUD Housing Programs Reporting

Other Findings in this Audit

  • 565963 2024-005
    Material Weakness Repeat
  • 1142404 2024-004
    Material Weakness Repeat
  • 1142405 2024-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.872 Public Housing Capital Fund $1.00M
14.850 Public and Indian Housing $257,275