Finding Text
2023-004 – Lack of Reporting (MW, NC)
Federal Program Title: Section 8 Housing Choice Vouchers
Federal Catalog Number: 14.871
Federal Agency: U.S. Department of Housing and Urban Development
Category of Finding: Reporting
Criteria: The Office of Management and Budget 2023 Compliance Supplement states that the following reports
are required to be submitted to the U.S. Department of Housing and Urban Development (HUD).
Financial Reports (OMB No. 2535-0107) – Financial Assessment Subsystem, FASS-PH. The Uniform
Financial Reporting Standards (24 CFR section 5.801) require PHAs to submit timely GAAP-based unaudited
and audited financial information electronically to HUD. Unaudited submissions are due no later than 60 days
after the agency’s FYE and audited submissions are due nine months after the agency’s FYE. The FASS-PH
system is one of HUD’s main monitoring and oversight systems for the HCVP.
Condition: The FASS- PH unaudited and audited submissions for FY 2021, 2022, 2023 and 2024 are
delinquent.
Cause: Turnover of staff in the Housing Authority and delay in recruitment. Lack of internal control over the
retention of program reports that form as the basis of the FASS-PH submissions.
Effect or Potential Effect: The City may be subject to a permanent reduction or offset of administrative fees in
an amount to be determined by HUD and demotion of the PHA’s SEMAP scoring one level.
Questioned Cost: None.
Context: The City obtained the notification from HUD dated on July 11, 2024. The City submitted the audited
financial statements for FY 2021 and 2022 on June 25, 2024 and December 20, 2024, respectively.
Statistical Sampling Validity: Not applicable.
Repeat of a Prior-Year Finding: 2018-007, 2019-005, 2020-001, 2021-002
Recommendation: We recommend the City establish policies and procedures that will ensure the submission
of unaudited and audited financial information to HUD on a timely basis.
Status: In Progress
Management Response and Corrective Action Plan
City's Response: The City concurs with the recommendation.
Corrective Action Plan: The City Controller’s Office drafted a grants policy that is currently under review
by City Management. Community development staff will ensure a succession plan is in place for any staff
turnover and for report preparation compliance.
Planned Implementation Date: September 2025
Responsible Person(s): City Manager, City Controller, and Community Development Director