Finding Text
Material Weakness; 2019-004 Compliance with Reporting to Housing and Urban Development; Information on Federal Program: U.S Department of Housing and Urban Development Assistance Listing No. 14.871.; Criteria: According to 24 CFR § 5.801, audited financial statements must be submitted to HUD annually, no later than nine months after the end of the fiscal year or the reporting period.; Statement of Condition: The financial information submission was not submitted timely.; Statement of Cause: Due to significant turnover in key positions within the Town’s fiscal office, the financial audits are currently behind. The results of the financial audits are required as part of the submission with the REAC, therefore, the REAC cannot be completed and submitted until the completion of the financial audits.; Statement of Effect: The Town was not in compliance with federal guidelines.; Questioned Cost: None.; Repeat Finding: No.; Perspective Information: As part of testing the compliance with the reporting requirements of the program, the submission of the REAC form is reviewed and additional procedures performed related to the information contained in the REAC submission related to the audited financial statements. As the financial statements have not yet been audited, this review could not be completed.; Recommendation: The Town should follow federal guidelines by submitting the audited financial statement to HUD through the REAC submission in a timely manner.; Views of responsible officials and Planned Corrective Actions: The Town of Guilderland Comptroller’s Office suffered significant turnover in key positions during the fiscal years of 2019 and 2021 including the retirement of the Town Comptroller and Fiscal Officer. In addition, the COVID-19 pandemic had significant impact to the Town, particularly during 2020 when remote work was encouraged. This combination and sequence of events made it impossible to meet the required external audit reporting deadlines. Since these events, the Town has filled the vacant positions and has scheduled all remaining audits. The auditors are working as expeditiously as possible to complete the remaining audits. The required reporting noted in the guidelines above cannot be completed until each prior year audit is finished, therefore causing a delay in each fiscal year’s reporting.