Finding 971005 (2023-002)

2023 – 002 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Financial Report Requirements required performance reports for required action plan to be submitted within 30 days of period end. Condition: The first 2 quarter reports, for period ending September 30, 2022 and December 31, 2022, were submitted one day late, on October 31, 2022 and January 31, 2023 respectively. Questioned costs: None Context: During our testing, it was noted that the Project did not submit for first two quarters within the required time. These were subsequently submitted and accepted by HUD. Cause: Turnover in controller position lead to oversight of this being submitted in time. Effect: The quarterly report was not submitted in time in accordance with the Special Circumstances as defined in the HUD Handbook. Repeat finding: Not a repeat finding Recommendation: We recommend the Project review controls to include processes to ensure timely submission. Views of responsible officials: There is no disagreement with the audit finding.