Finding Text
On our review of the Financial Assessment Sub-system (FASS-PH), the Municipality submitted the GAAP- based audited financial information electronically to HUD for fiscal years 2020 and 2021 after required submittion date.
Fiscal Due Date Past Due
Year Date Submitted Days
2021 September 30, 2022 February 23, 2024 512 days
2020 September 30, 2022 February 22, 2024 511 days
CRITERIA:
According to 24 CFR 902.33 “Financial Reporting Requirements”, the PHA must submit an audited Financial Data Schedule no later than 9 months after the PHA’s fiscal year ends. PHAs are required to submit their financial information through the FASS-PH system.
CAUSE AND EFFECT:
This condition occurred because the Project Administrator has not adopted adequate internal controls and procedures designed to ensure the timely submission of program reports and the lack of adequate training and supervision of the municipal employees in charge of the preparation of the aforementioned reports.
This condition, if not corrected, may increase the risk of avoidable instances of material non-compliances with the laws and regulations applicable to the Program.RECOMMENDATION:
The Project Administrator should improve existing procedures to ensure the timely submission of the financial reports in order to comply with Federal regulation. Also, the Project Administrator should consider implementing a reporting calendar to maintain all personnel aware of the reporting deadlines of each federal financial report. This will provide an additional tool to help the Municipality in complying with the federal regulation.