Finding 570440 (2024-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-07-03
Audit: 361410
Organization: Gulf Coast Heron Housing, INC (FL)
Auditor: Rsm US LLP

AI Summary

  • Core Issue: The Project failed to submit its Single Audit Package to the Federal Audit Clearinghouse by the required deadline due to delays in the year-end closing process.
  • Impacted Requirements: This noncompliance violates the Uniform Guidance, which mandates timely submission of audit reports and adherence to internal control procedures.
  • Recommended Follow-Up: Management should establish better procedures and controls to ensure timely reconciliation and completion of future audits.

Finding Text

Other Matter Noncompliance – Reporting and Significant Deficiency Agency and Award: U.S. Department of Housing and Urban Development ALN Number: 14.157, Supportive Housing for the Elderly and 14.195, Section 8 Housing Assistance Payments Program Nonmaterial Noncompliance – Reporting Criteria: Under the Uniform Guidance, Section 200.512, Report Submission, the audit must be completed and the data collection form and single audit reporting package must be submitted to the Federal Audit Clearinghouse (FAC) within the earlier or 30 calendar days after receipt of the auditor’s report, or nine months after the end of the audit period. Additionally, internal controls pertaining to monthly and year-end close processes should include procedures to ensure all supporting schedules are prepared and reviewed timely ensuring timely audits and compliance with the Committee of Sponsoring Organizations (COSO) framework. Condition: The audit of the Project for the year ended June 30, 2024, had a submission deadline of March 31, 2025. The Project’s June 30, 2024 Single Audit Package was not submitted to the FAC by the deadline of March 31, 2025. Cause: Significant delays stemming from the Project’s year-end closing process extended over a prolonged period due to staffing challenges. As a result, delays in the completion of the audit result in required audit procedures and ultimate completion date to extend beyond the regulatory deadline. Effect or Potential Effect: The late filing could potentially delay the ability of the federal government to monitor the Project. Context: No monetary value or effect on population as the condition relates to the late filing of the audit report. Questioned costs: None Repeat finding: No Recommendation: We recommend that management implement procedures and controls to ensure that all activity is properly reconciled on a timely basis so that future audits are completed timely. Views of responsible officials of the auditee: Management agrees with the finding and recommendation.

Corrective Action Plan

Finding: Under the Uniform Guidance, Section 200.512 Report Submission, the audit must be completed, and the data collection form and single audit package must be submitted to the Federal Audit Clearinghouse (FAC) with the earlier of 30 calendar days after receipt of the auditor's report, or nine months after year end of the audit period. This deadline would have been March 31, 2025, for the Organization's Single Audit reporting for the year ended June 30, 2024. Corrective Action Taken or Planned: Management has reviewed the recommendations and will develop a schedule with auto reminders to ensure that these reporting requirements are completed on a timely basis. The corrective action will be implemented no later than June 30, 2025. The primary designated official is the Chief Financial Officer.

Categories

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

Other Findings in this Audit

  • 570441 2024-001
    Significant Deficiency
  • 1146882 2024-001
    Significant Deficiency
  • 1146883 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $5.69M
14.195 Project-Based Rental Assistance (pbra) $592,764