Finding 977222 (2020-001)

Finding 2020-001: Financial Reporting Requirements for Financial Assessment Submission-PHA (“FASPHA”). Federal Agency: U.S. Department of Housing and Urban Development; CFDA 14.871, Section 8 Housing Choice Vouchers. Criteria: The Financial Assessment Sub-system, FASS-PH and (24 CFR section 5.801) require PHAs to submit timely GAAP-based unaudited and audited financial information electronically to HUD. The FASS-PH system is one of HUD's main monitoring and oversight systems for the Housing Choice Voucher Program (“HCVP”). Condition: PHA Management has not filed the audited data for the years 2009 through 2019. This condition continues from previous years. Reference prior year finding 2019-001. Cause: PHA management uses an outside accounting service to submit the required information to the Financial Assessment Sub-system. Since 2009 only unaudited data has been submitted by the outside accounting service. The outside service has not reconciled and reported the audited data. Effect: Since the required audited information has not been submitted to the FASS-PH System, as the PHA’s Independent Public Accountant, (“IPA”) we have not been able to verify that the actual audit information was correctly entered into the system. We are not able to certify and agree to the PHA’s submission. Questioned Costs: None Recommendation: Management must comply with the requirements to submit timely GAAP-based unaudited and audited financial information to the FASS-PH system. Management’s Views and Corrective Action Plan Management’s views and corrective action plan are included at the end of this report.