Finding 606980 (2022-002)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-06-25

AI Summary

  • Core Issue: The Housing Authority failed to submit the Unaudited Financial Data Schedule to HUD on time, missing the 60-day deadline.
  • Impacted Requirements: This non-compliance with 24 CFR Part 5 regulations affects the accuracy and timeliness of financial reporting.
  • Recommended Follow-Up: The Housing Authority should review HUD guidelines and implement measures to ensure timely submissions in the future.

Finding Text

Finding 2022-002 ? Accounting Controls ? Timeliness of Financial Statement Preparation ALN 14.182 Section 8 New Construction, Noncompliance & Material Weakness Criteria: Regulations at 24 CFR Part 5 describe the reporting requirements for Housing Authority?s that are recipients of Section 8 project-based housing grants. PHA?s that serve as contract administrators for the funding must submit financial information to HUD within sixty (60) days of the end of the reporting period. Condition & Cause: We noted that the client did not submit the Unaudited Financial Data Schedule to HUD within sixty days of the reporting period?s end date. The unaudited FDS was submitted May 8, 2023, into the HUD REAC online system with an original due date of November 30, 2022. This is largely due to staff turnover and other unexpected circumstances. Effect: Non-compliance and reporting deficiencies of the entity financial statements. Recommendation: We recommend that the Housing Authority review HUD reporting guidelines and submit these reports in a timely fashion. Questioned Costs: N/A Repeat Finding: No Views of responsible officials: The PHA agrees with the results of the audit and recommendation.

Categories

HUD Housing Programs Material Weakness Reporting

Other Findings in this Audit

  • 30537 2022-001
    Material Weakness
  • 30538 2022-002
    Material Weakness
  • 606979 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $9.17M
14.182 Section 8 New Construction and Substantial Rehabilitation $1.51M
14.872 Public Housing Capital Fund $28,670
14.850 Public and Indian Housing $21,187