Finding 618380 (2022-001)

Criteria: The Uniform Guidance requires appropriate internal controls over compliance for each direct and material compliance requirement. Proper controls over the submission timing of the quarterly consolidated financial statements ensure that the submissions are completed and submitted timely. Condition: The System did not have a control process established to ensure quarterly reports were completed and submitted timely. Effect: The System submitted quarterly reports after the required due date to HUD. Questioned Costs: None. Cause: Lack of effectively designed and implemented controls around the completion and timely submission of the quarterly reports. Recommendation: Management should establish effective controls over compliance and reporting to ensure the quarterly reports are completed and submitted timely. Management Response: See corrective action plan.