Finding 609448 (2022-001)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2022-12-29
Audit: 37175
Organization: Cypresswood Estates LLC (TX)

AI Summary

  • Core Issue: The U.S. Department of Housing and Urban Development found a significant deficiency in internal controls due to late submission of financial data.
  • Impacted Requirements: Public Housing Authorities must submit GAAP-based financial information to HUD within 60 days of the fiscal year end, as per Uniform Financial Reporting Standards.
  • Recommended Follow-Up: Implement controls to ensure timely reporting to HUD to meet regulatory deadlines.

Finding Text

2022 ? 001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Housing Voucher Cluster Assistance Listing Number: 14.871 Federal Award Identification Number and Year: TX441VO; 2022 Award Period: April 1, 2021 ? March 31, 2022 Type of Finding: ? Significant Deficiency in Internal Control over Compliance ? Other Matters Criteria or specific requirement: The Uniform Financial Reporting Standards (24 CFR section 5.801) require Public Housing Authorities (PHAs) to submit timely GAAP-based unaudited financial information electronically to HUD via the Real Estate Assessment Center (REAC) within 60 days of the PHAs fiscal year end. Condition: The unaudited financial data schedule (FDS) was not submitted to REAC by the deadline. Questioned costs: None Context: The unaudited FDS was submitted to HUD on July 20, 2022. Cause: The unaudited FDS was not prepared timely. Effect: The Authority is not in compliance with reporting requirements. Repeat Finding: No Recommendation: We recommend that the Authority implements a control to ensure timely reporting to HUD in accordance with applicable regulatory requirements. Views of responsible officials: There is no disagreement with the audit finding.

Categories

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

Other Findings in this Audit

  • 33006 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.871 Section 8 Housing Choice Vouchers $52.85M
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $18.80M
14.871 Section 8 Housing Choice Vouchers - Covid-19 Hcv Cares Act Funding $1.12M
14.249 Section 8 Moderate Rehabilitation Single Room Occupancy $330,572
14.871 Emergency Housing Vouchers $197,203