Finding 569370 (2024-001)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-06-30

AI Summary

  • Core Issue: The Authority missed the deadline for submitting its unaudited financial data, which was due on December 15, 2024, but was submitted late in February 2025.
  • Impacted Requirements: This delay violates the reporting guidelines set by the Housing Choice Voucher (HCV) compliance supplement.
  • Recommended Follow-Up: The Authority should enhance its internal controls to ensure timely financial reporting in the future.

Finding Text

US Department of Housing and Urban Development Direct Award Program Name: Housing Voucher Center Cluster Internal Control Significant Deficiency L Reporting AL Number: 14.871 2024-001 Unaudited Submission Criteria: Financial Data Schedule (FDS) submission for unaudited financials are due within 2 months after the fiscal year end (24 CFR section 5.801). Condition: Management missed the deadline for its unaudited REAC FDS submission. Context: The Authority 's unaudited FDS submission was due on December 15th, 2024. The Authority did not submit the submission until February 2025. Cause: Management misinterpreted the deadline for the unaudited FDS submission for PHA's. Effect: The Authority is not in compliance with the reporting guidelines outlined in the HCV compliance supplement. Recommendations: The Authority needs to improve its internal controls over financial reporting by submitting its financial data on a timelier basis. Management Views: Management agrees with the finding, see Management's Corrective Action Plan.

Corrective Action Plan

Management’s Corrective Action Plan Program Name: Name of Federal Program or Cluster CFDA Number:14.871 2024-001: Unaudited Submission Criteria: Financial Data Schedule (FDS) submission for unaudited financials are due within 2 months after the fiscal year end (24 CFR section 5.801) Condition: Management missed the deadline for its unaudited REAC FDS submission. Context: The Authority’s unaudited FDS submission was due on December 15th 2024. The Authority did not submit the submission until February 2025. Management Response: A compliance calendar has been implemented and is maintained by both the Finance Director and Executive Director to track HUD and REAC deadlines. The unaudited FDS will be finalized and submitted no later than 5 business days prior to the formal due date, allowing sufficient buffer time. Oversight and reminders are issued monthly by the Chief Financial Officer to ensure proper tracking and timely filing. As well, additional staff is being crossed train so that the agency will not dependent one person for FDS Submission.

Categories

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

Other Findings in this Audit

  • 569371 2024-002
    Significant Deficiency Repeat
  • 569372 2024-003
    Significant Deficiency
  • 1145812 2024-001
    Significant Deficiency Repeat
  • 1145813 2024-002
    Significant Deficiency Repeat
  • 1145814 2024-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $9.15M
14.879 Mainstream Vouchers $613,232
14.896 Family Self-Sufficiency Program $86,709