Finding 59530 (2022-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-02-08
Audit: 54886
Organization: Lexington Housing Authority (NC)

AI Summary

  • Core Issue: The Authority missed the deadline for submitting unaudited financials, which is required within 2 months after the fiscal year end.
  • Impacted Requirements: This delay puts the Authority out of compliance with HUD reporting requirements.
  • Recommended Follow-Up: Improve internal controls to ensure timely submission of financial data, as outlined in the corrective action plan.

Finding Text

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 deadline for its unaudited submissions. Context: Upon review of the unaudited FDS submission, we noted that the date of the submission was passed the due date. Cause: Management did not make sure unaudited FDS submission was completed within the 60 day window. Effect: The Authority is not in compliance with HUD reporting requirements. Recommendations: The Authority should improve its internal controls over financial reporting by submitting its financial data on a timely basis. Management Views: We agree with this finding and have outlined our plan of action in our corrective action plan.

Corrective Action Plan

During our audit, It was determined that the unaudited submission was submitted beyond the 2 months closing of the fiscal year end (24 CFR Section 5.801). Due to an outstanding legal matter and invoice necessary to report accurate financial standing the Housing Authority was unable to meet the deadline. The Housing Authority will ensure that all future invoices are received in a timely manner so that the unaudited reporting deadline meets HUD 60 day window.

Categories

HUD Housing Programs Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 635972 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.241 Housing Opportunities for Persons with Aids $174,678
14.871 Section 8 Housing Choice Vouchers $76,766
14.896 Family Self-Sufficiency Program $75,236