Finding Text
Finding 2022-001 ? Housing Voucher Cluster Noncompliance and Significant Deficiency in Internal Controls over SEMAP submission. Criteria: The Uniform Financial Reporting Standards (UFRS), at 24 CFR ? 985.101, require Authorities to submit SEMAP certification form within 60 calendar days after the end of its fiscal year. Condition and Context: During the audit for the year ended June 30, 2022, it was discovered that the Authority had not submitted the SEMAP certification within 60 days of the end of the fiscal year. Effect or Potential Effect: As a result of this noncompliance, the PHA could receive an overall performance rating of ?troubled? which means the PHA will be subject to the requirements of CFR ? 985.107 ?Required actions for PHA with troubled performance rating.?. This may include: on-site reviews by HUD with a written reports to follow, a corrective action plan to address any issues that HUD identified, monitoring of the corrective action plan, prohibition of use of administrative fees, and upgrading the poor performance rating via HUDs determination that a change in the rating is warranted. Cause: The cause of this error is managements lack of control over monitoring the deadline associated with submission of the SEMAP certification. Recommendation: We recommend that management adds this and any other pertinent deadlines to a calendar for better tracking throughout the year. Views of Responsible Official(s): Management agrees with the finding and have outlined a plan of action in the corrective action plan section of this report