Finding Text
Current Year Findings and Questioned Costs ? Major Federal Award Program Audit Finding 2022-002 Reporting ? Internal Control and Compliance over Reporting Identification of the Federal Program: Assistance Listing Number: 14.871 Assistance Listing Title: Section 8 Housing Choice Vouchers Federal Agency: Department of Housing and Urban Development Pass-Through Entity: N/A Federal Award Number and Award Year: CA032 Criteria: HUD-52648, SEMAP Certification ? Addendum for Reporting Data for Deconcentration Bonus Indicator (OMB No. 2577-0215) ? PHAs with jurisdiction in metropolitan Fair Market Rent areas have the option of submitting data to HUD with their annual Section Eight Management Assessment Program (SEMAP) certifications on the percent of their tenant-based Section 8 families with children who live in and who have moved during the PHA fiscal year to low poverty census tracts in the PHA?s principal operating area. Submission of this information with the SEMAP certification makes the PHA eligible for bonus points under SEMAP (24 CFR section 985.3(h)). The following federal fiscal year quarter reporting period will be used for all quarterly reports, are due to HUD 30 days after the period end dates. HUD-52681-B, Voucher for Payment of Annual Contributions and Operating Statement (OMB No. 2577-0169). The PHA submits this form monthly to HUD electronically via the VMS. Congress has instructed HUD to use VMS data to determine renewal funding levels. HUD also uses VMS data for other funding, monitoring, and SEMAP-related decisions. HUD relies on the audit of the key line items below to determine the reasonableness of the data submitted for the purposes of calculating funding under the program. Condition: For the Section 8 Housing Choice Vouchers program, the City did not submit the reports within the required deadline: Report Type Reporting Period (End Date)Report Submission Deadline Report SubmissionDateSF-425 Federal Financial Report August 2021September 22, 2022September 24, 2022SF-425 Federal Financial Report July 2021August 22, 2022August 26, 2022 Cause: The City did not have internal controls in place to ensure that financial and performance reports are filed timely. Effect or Potential Effect: Delay in filing the reports resulted in non-compliance with the compliance requirements. Questioned Costs: None. Identification as a Repeat Finding, If Applicable: Not applicable. Recommendation: We recommend that the City strengthen internal controls by implementing procedures to ensure the timely filing of financial and performance reports. View of Responsible Officials: The City agrees with the auditor's finding. The City's Finance Department has implemented procedures to monitor the filing of financial and performance reports.