EIN: 660433516
UEI: QW6NNELX38Y7
Data as of August 23, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on May 29, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by November 29, 2026 (97 days from today).
What is a management decision? →The Municipality did not submit to the Federal Audit Clearinghouse, in a timely manner, the Single Audit reporting package for the fiscal year ending on June 30, 2025. The due date for this report was no later than March 31, 2026.
Show full finding ▾Hide full finding ▴The Municipality did not submit to the Federal Audit Clearinghouse, in a timely manner, the Single Audit reporting package for the fiscal year ending on June 30, 2025. The due date for this report was no later than March 31, 2026.
The Fiscal Year 2024-2025 Single Audit will be submitted as soon as the Single Audit Report be finally issued by the external auditors.
2024-004
FAC accepted this audit on January 23, 2026 — management decision was due July 23, 2026.
During our test that property records related to a real properties improved, with federal funds, did not disclose that it was acquired with such funds. Section 1303.46 (b) (1) of the 45 Code of Federal Regulations establishes that If a grantee uses federal funds to purchase real property or a facility, excluding modular units, appurtenant to real property, it must record a notice of federal interest in the official real property records for the jurisdiction where the facility is or will be located. The grantee must file the notice of federal interest as soon as it uses Head Start funds to either fully or partially purchase a facility or real property where a facility will be constructed or as soon as it receives permission from the responsible HHS official to use Head Start funds to continue purchase on a facility.
Show full finding ▾Hide full finding ▴During our test that property records related to a real properties improved, with federal funds, did not disclose that it was acquired with such funds. Section 1303.46 (b) (1) of the 45 Code of Federal Regulations establishes that If a grantee uses federal funds to purchase real property or a facility, excluding modular units, appurtenant to real property, it must record a notice of federal interest in the official real property records for the jurisdiction where the facility is or will be located. The grantee must file the notice of federal interest as soon as it uses Head Start funds to either fully or partially purchase a facility or real property where a facility will be constructed or as soon as it receives permission from the responsible HHS official to use Head Start funds to continue purchase on a facility.
The Municipality, as a Head Start program grant recipient, used Program funds to construct a new administrative facility. Therefore, instructions were given to the Municipality's legal counsel, to file a notice of federal interest as set forth in the 45 CFR, Part 1303.46.
FAC accepted this audit on March 31, 2025 — management decision was due October 1, 2025.
FINDING 2023-005 FEDERAL PROGRAMS COMMUNITY DEVELOPMENT BLOCK GRANTS/ ENTITLEMENT GRANTS CLUSTER: COMMUNITY DEVELOPMENT BLOCK GRANTS/ ENTITLEMENT GRANTS (ASSISTANCE LISTING NUMBER 14.218) U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT TYPE OF FINDING COMPLIANCE AND INTERNAL CONTROL COMPLIANCE REQUIREMENT PROGRAM INCOME CONDITION During the Program Income test, I noted that the Municipality did not spend down program income funds on hand before grant funds. The Program had $224,800 in program income funds available to be disbursed for eligible activities during fiscal year 2022-2023. Nevertheless, the program only spends $92,126 of these funds and made cash withdrawals of CDBG funds for activities that could be covered with program income funds. CRITERIA Code of Federal Regulations 24, Section 570.504(b)(2)(ii) states that if the recipient chooses to retain program income, that program income shall be disbursed for eligible activities before additional cash withdrawals are made from the U. S. Treasury. CAUSE During the fiscal year 2022-2023, the Program did not maintain appropriate internal controls to ensure that all program income funds are used before additional grant funds drawdowns are made. EFFECT When Grant Funds are used for an expenditure in place of the Program Income on hand, the grantee will not have the opportunity to increase the amounts available for program activities. RECOMMENDATION I recommend management continue improving the internal controls and procedures to ensure that the program income funds are used for CDBG activities before withdrawal of CDBG funds. QUESTIONED COSTS None PRIOR YEAR FINDING A similar finding was presented in prior year Schedule of Findings and Questioned Costs (2022-005) VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION Instructions were given to the Program staff to ensure that the program income funds will be used for CDBG activities before the withdrawal of CDBG funds.
Show full finding ▾Hide full finding ▴FINDING 2023-005 FEDERAL PROGRAMS COMMUNITY DEVELOPMENT BLOCK GRANTS/ ENTITLEMENT GRANTS CLUSTER: COMMUNITY DEVELOPMENT BLOCK GRANTS/ ENTITLEMENT GRANTS (ASSISTANCE LISTING NUMBER 14.218) U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT TYPE OF FINDING COMPLIANCE AND INTERNAL CONTROL COMPLIANCE REQUIREMENT PROGRAM INCOME CONDITION During the Program Income test, I noted that the Municipality did not spend down program income funds on hand before grant funds. The Program had $224,800 in program income funds available to be disbursed for eligible activities during fiscal year 2022-2023. Nevertheless, the program only spends $92,126 of these funds and made cash withdrawals of CDBG funds for activities that could be covered with program income funds. CRITERIA Code of Federal Regulations 24, Section 570.504(b)(2)(ii) states that if the recipient chooses to retain program income, that program income shall be disbursed for eligible activities before additional cash withdrawals are made from the U. S. Treasury. CAUSE During the fiscal year 2022-2023, the Program did not maintain appropriate internal controls to ensure that all program income funds are used before additional grant funds drawdowns are made. EFFECT When Grant Funds are used for an expenditure in place of the Program Income on hand, the grantee will not have the opportunity to increase the amounts available for program activities. RECOMMENDATION I recommend management continue improving the internal controls and procedures to ensure that the program income funds are used for CDBG activities before withdrawal of CDBG funds. QUESTIONED COSTS None PRIOR YEAR FINDING A similar finding was presented in prior year Schedule of Findings and Questioned Costs (2022-005) VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION Instructions were given to the Program staff to ensure that the program income funds will be used for CDBG activities before the withdrawal of CDBG funds.
Instructions were given to the Program staff to ensure that the program income funds will be used for CDBG activities before the withdrawal of CDBG funds.
2022-005
FINDING NUMBER 2023-006 FEDERAL PROGRAM HOUSING VOUCHER CLUSTER: SECTION 8 HOUSING CHOICE VOUCHERS (ASSISTANCE LISTING NUMBER 14.871) U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT TYPE OF FINDING MATERIAL WEAKNESS AND INSTANCE OF NONCOMPLIANCE COMPLIANCE REQUIREMENT ELIGIBILITY CONDITION During the Eligibility test, twenty (25) participants’ files were examined related to the reexamination process, and noted the following conditions: a. In seven (7) participants’ files, the Enterprise Income Verification (EIV) report corresponding to the annual reexamination selected for evaluation, was not available for my review. b. In three (3) participants’ files, the housing assistance payment was incorrect due to errors in the determination of the family income (2 files) or applicable deductions (1 file) used in the calculation. c. Four (4) participants’ files did not include the certificate of criminal record and one (1) participant file did not include the certification of the verification in the sex offenders register for one or more adult family members. CRITERIA Code of Federal Regulation 24, Section 982.516 (a) (1) states that the PHA must conduct a reexamination of family income and composition at least annually; (2) the PHA must obtain and document in the tenant file third party verification of the following factors or must document in the file why third party verification was not available: (A) reported family annual income; (B) the value of assets; (C) expenses related to deductions from annual income; and (D) other factors that affects the determination of adjusted income. In accordance with the regulations at 24 CFR 5.856 and 5.905, O/As and PHAs must perform necessary criminal history background checks to determine if an applicant, or a member of an applicant’s household, is subject to a lifetime registration requirement under a state sex offender registration program. This check must be carried out with respects to the State in which the housing is located and with respect to States where the applicant and members of the applicant’s household are known to have resided. CAUSE The Program’s internal controls and procedures failed to ensure that the reexamination and HAP determination processes were performed according to program requirements and guidelines. Also, the internal controls did not ensure that all the required documentation necessary for the reexamination process was obtained from the participants. EFFECT The lack of monitoring and adequate supporting documentation during the reexamination processes could lead to the approval and disbursement of improper amounts and the approval of benefits to people that do not qualify. RECOMMENDATION I recommend management to continue strengthening its internal controls and procedures to ensure that the re-examination and HAP determination processes are performed according to program requirements and guidelines. Also, management must reinforce the internal controls to ensure that all the required documentation necessary for the reexamination process is obtained in a timely manner. QUESTIONED COSTS None PRIOR YEAR FINDING A similar finding was presented in prior year Schedule of Findings and Questioned Costs (2022-006) VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION Instructions were given to the Program staff to strengthen existing internal controls and procedures to ensure that the re-examination and HAP determination processes will be performed according to program requirements and guidelines, and to obtain in a timely manner all the required documentation for each reexamination executed.
Show full finding ▾Hide full finding ▴FINDING NUMBER 2023-006 FEDERAL PROGRAM HOUSING VOUCHER CLUSTER: SECTION 8 HOUSING CHOICE VOUCHERS (ASSISTANCE LISTING NUMBER 14.871) U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT TYPE OF FINDING MATERIAL WEAKNESS AND INSTANCE OF NONCOMPLIANCE COMPLIANCE REQUIREMENT ELIGIBILITY CONDITION During the Eligibility test, twenty (25) participants’ files were examined related to the reexamination process, and noted the following conditions: a. In seven (7) participants’ files, the Enterprise Income Verification (EIV) report corresponding to the annual reexamination selected for evaluation, was not available for my review. b. In three (3) participants’ files, the housing assistance payment was incorrect due to errors in the determination of the family income (2 files) or applicable deductions (1 file) used in the calculation. c. Four (4) participants’ files did not include the certificate of criminal record and one (1) participant file did not include the certification of the verification in the sex offenders register for one or more adult family members. CRITERIA Code of Federal Regulation 24, Section 982.516 (a) (1) states that the PHA must conduct a reexamination of family income and composition at least annually; (2) the PHA must obtain and document in the tenant file third party verification of the following factors or must document in the file why third party verification was not available: (A) reported family annual income; (B) the value of assets; (C) expenses related to deductions from annual income; and (D) other factors that affects the determination of adjusted income. In accordance with the regulations at 24 CFR 5.856 and 5.905, O/As and PHAs must perform necessary criminal history background checks to determine if an applicant, or a member of an applicant’s household, is subject to a lifetime registration requirement under a state sex offender registration program. This check must be carried out with respects to the State in which the housing is located and with respect to States where the applicant and members of the applicant’s household are known to have resided. CAUSE The Program’s internal controls and procedures failed to ensure that the reexamination and HAP determination processes were performed according to program requirements and guidelines. Also, the internal controls did not ensure that all the required documentation necessary for the reexamination process was obtained from the participants. EFFECT The lack of monitoring and adequate supporting documentation during the reexamination processes could lead to the approval and disbursement of improper amounts and the approval of benefits to people that do not qualify. RECOMMENDATION I recommend management to continue strengthening its internal controls and procedures to ensure that the re-examination and HAP determination processes are performed according to program requirements and guidelines. Also, management must reinforce the internal controls to ensure that all the required documentation necessary for the reexamination process is obtained in a timely manner. QUESTIONED COSTS None PRIOR YEAR FINDING A similar finding was presented in prior year Schedule of Findings and Questioned Costs (2022-006) VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION Instructions were given to the Program staff to strengthen existing internal controls and procedures to ensure that the re-examination and HAP determination processes will be performed according to program requirements and guidelines, and to obtain in a timely manner all the required documentation for each reexamination executed.
Instructions were given to the Program staff to strengthen existing internal controls and procedures to ensure that the re-examination and HAP determination processes will be performed according to program requirements and guidelines, and to obtain in a timely manner all the required documentation for each reexamination executed.
2022-006
FINDING NUMBER 2023-007 FEDERAL PROGRAM HOUSING VOUCHER CLUSTER: SECTION 8 HOUSING CHOICE VOUCHERS/ EMERGENCY HOUSING VOUCHERS (ASSISTANCE LISTING NUMBERS 14.871/ 14.EHV) U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT TYPE OF FINDING MATERIAL WEAKNESS AND INSTANCE OF NONCOMPLIANCE COMPLIANCE REQUIIREMENT REPORTING CONDITION The Program did not comply with the financial and special reporting requirements, as follows: 1. The GAAP-based audited financial information of the programs for the fiscal year ended June 30, 2023, was not submitted on time through the FASS-PH system. 2. The expenditures reported in the Voucher Management System (VMS) for the fiscal year ended June 30, 2023, have differences with the amounts reported in the draft audited financial information for the fiscal year ended June 30, 2023, submitted through the FASS-PH system, as follows: HOUSING CHOICE VOUCHERS VMS FASS-PH DIFFERENCE Operating and Administrative $ 87,751 $ 114,508 $ (26,757) Housing Assistance Payments 527,986 540,385 (12,399) HAP Portability-in 224,441 226,604 (2,163) Total $ 840,178 $ 881,497 $ (41,319) EMERGENCY HOUSING VOUCHERS VMS FASS-PH DIFFERENCE Operating and Administrative $ 6,435 $ 8,183 $ (1,748) Total Operating -Tenants 500 500 - Emergency Housing Vouchers 41,191 46,407 (5,216) Total $ 48,126 $ 55,090 $ (6,964) CRITERIA 24 CFR, Section 982.158 (a) (b) states that the PHA must maintain complete and accurate accounts and other records for the program in accordance with HUD requirements, in a manner that permits a speedy and effective audit. The records must be in the form required by HUD, including requirements governing computerized or electronic forms of record-keeping. Also, the PHA must furnish HUD accounts and other records, reports, documents, and information, as required by HUD. Also, 24 CFR, Section 5.801 (b), submission of financial information. Entities to which this subpart is applicable must provide to HUD such financial information as required by HUD. Such information must be provided on an annual basis, except as required more frequently under paragraph (c) (4) of this section. This information must be: (1) prepared in accordance with Generally Accepted Accounting Principles; (2) submitted electronically to HUD through the internet, or in such other electronic format designated by HUD, or in such non-electronic format as HUD may allow if the burden or cost of electronic reporting is determined by HUD to be excessive. In addition, Section 5.801 (d), reporting compliance dates. Unaudited financial statements will be required 60 days after the PHA's fiscal year end, and audited financial statements will then be required no later than 9 months after the PHA's fiscal year end, in accordance with the Single Audit Act and 2 CFR part 200, subpart F. CAUSE The internal controls and procedures maintained by the Municipality failed to ensure the accuracy of the expenditures reported in the VMS and the timely submission to HUD of the GAAP based audited financial information. EFFECT The lack of proper filing of required financial reports may lead HUD to impose special conditions regarding the use of funds to the Municipality. Also, HUD relies on key line items of the reports to determine the reasonableness of the data submitted for the purposes of calculating funding under the program. Accordingly, future funding for the Municipality may be affected negatively. RECOMMENDATION The Municipality should continue strengthening the established internal controls and procedures to submit to HUD the financial reports according to applicable requirements. QUESTIONED COSTS None PRIOR YEAR FINDING A similar finding was presented in prior year Schedule of Findings and Questioned Costs (2022-007). VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION Instructions were given to the Program staff to strengthen existing internal controls and procedures to ensure the submission of financial information according to applicable requirements, and to reconcile the amounts reported in the Voucher Management System (VMS) with the accounting records and proceed with any necessary corrections about the information previously reported. Moreover, the audited financial data schedule for the fiscal year 2022-2023 will be submitted as soon as the Single Audit Report be finally issued by the external auditors.
Show full finding ▾Hide full finding ▴FINDING NUMBER 2023-007 FEDERAL PROGRAM HOUSING VOUCHER CLUSTER: SECTION 8 HOUSING CHOICE VOUCHERS/ EMERGENCY HOUSING VOUCHERS (ASSISTANCE LISTING NUMBERS 14.871/ 14.EHV) U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT TYPE OF FINDING MATERIAL WEAKNESS AND INSTANCE OF NONCOMPLIANCE COMPLIANCE REQUIIREMENT REPORTING CONDITION The Program did not comply with the financial and special reporting requirements, as follows: 1. The GAAP-based audited financial information of the programs for the fiscal year ended June 30, 2023, was not submitted on time through the FASS-PH system. 2. The expenditures reported in the Voucher Management System (VMS) for the fiscal year ended June 30, 2023, have differences with the amounts reported in the draft audited financial information for the fiscal year ended June 30, 2023, submitted through the FASS-PH system, as follows: HOUSING CHOICE VOUCHERS VMS FASS-PH DIFFERENCE Operating and Administrative $ 87,751 $ 114,508 $ (26,757) Housing Assistance Payments 527,986 540,385 (12,399) HAP Portability-in 224,441 226,604 (2,163) Total $ 840,178 $ 881,497 $ (41,319) EMERGENCY HOUSING VOUCHERS VMS FASS-PH DIFFERENCE Operating and Administrative $ 6,435 $ 8,183 $ (1,748) Total Operating -Tenants 500 500 - Emergency Housing Vouchers 41,191 46,407 (5,216) Total $ 48,126 $ 55,090 $ (6,964) CRITERIA 24 CFR, Section 982.158 (a) (b) states that the PHA must maintain complete and accurate accounts and other records for the program in accordance with HUD requirements, in a manner that permits a speedy and effective audit. The records must be in the form required by HUD, including requirements governing computerized or electronic forms of record-keeping. Also, the PHA must furnish HUD accounts and other records, reports, documents, and information, as required by HUD. Also, 24 CFR, Section 5.801 (b), submission of financial information. Entities to which this subpart is applicable must provide to HUD such financial information as required by HUD. Such information must be provided on an annual basis, except as required more frequently under paragraph (c) (4) of this section. This information must be: (1) prepared in accordance with Generally Accepted Accounting Principles; (2) submitted electronically to HUD through the internet, or in such other electronic format designated by HUD, or in such non-electronic format as HUD may allow if the burden or cost of electronic reporting is determined by HUD to be excessive. In addition, Section 5.801 (d), reporting compliance dates. Unaudited financial statements will be required 60 days after the PHA's fiscal year end, and audited financial statements will then be required no later than 9 months after the PHA's fiscal year end, in accordance with the Single Audit Act and 2 CFR part 200, subpart F. CAUSE The internal controls and procedures maintained by the Municipality failed to ensure the accuracy of the expenditures reported in the VMS and the timely submission to HUD of the GAAP based audited financial information. EFFECT The lack of proper filing of required financial reports may lead HUD to impose special conditions regarding the use of funds to the Municipality. Also, HUD relies on key line items of the reports to determine the reasonableness of the data submitted for the purposes of calculating funding under the program. Accordingly, future funding for the Municipality may be affected negatively. RECOMMENDATION The Municipality should continue strengthening the established internal controls and procedures to submit to HUD the financial reports according to applicable requirements. QUESTIONED COSTS None PRIOR YEAR FINDING A similar finding was presented in prior year Schedule of Findings and Questioned Costs (2022-007). VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION Instructions were given to the Program staff to strengthen existing internal controls and procedures to ensure the submission of financial information according to applicable requirements, and to reconcile the amounts reported in the Voucher Management System (VMS) with the accounting records and proceed with any necessary corrections about the information previously reported. Moreover, the audited financial data schedule for the fiscal year 2022-2023 will be submitted as soon as the Single Audit Report be finally issued by the external auditors.
Instructions were given to the Program staff to strengthen existing internal controls and procedures to ensure the submission of financial information according to applicable requirements, and to reconcile the amounts reported in the Voucher Management System (VMS) with the accounting records and proceed with any necessary corrections about the information previously reported. Moreover, the audited financial data schedule for the fiscal year 2022-2023 will be submitted as soon as the Single Audit Report be finally issued by the external auditors.
2022-007
FINDING NUMBER 2023-008 FEDERAL PROGRAM HOUSING VOUCHER CLUSTER: SECTION 8 HOUSING CHOICE VOUCHERS/ EMERGENCY HOUSING VOUCHERS (ASSISTANCE LISTING NUMBERS 14.871/ 14.EHV) U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT TYPE OF FINDING MATERIAL WEAKNESS AND INSTANCE OF NONCOMPLIANCE COMPLIANCE REQUIREMENT SPECIAL TEST- ROLLING FORWARD EQUITY BALANCES CONDITION During the examination of the program accounting records, I noted that the equity balances reported in the Voucher Management System (VMS) for the month of June 30, 2023, have differences with the amounts reported in the draft audited financial information for the fiscal year ended June 30, 2023, submitted through the FASS-PH system, as follows: VMS FASS-PH DIFFERENCE HCV - Restricted Net Position Funds (RNP) $ 34,760 $ 52,596 $ (17,836) HCV -Unrestricted Net Position Funds (UNP) $ 66,142 $ 42,043 $ 24,099 Emergency Housing Vouchers - Restricted Net Position Funds (RNP) $ 575 $ 19,471 $ (18,896) Emergency Housing Vouchers - Unrestricted Net Position Funds (UNP) $ (3,391) $ 6,693 $ (10,084) CRITERIA Code of Federal Regulations, 24 CFR, Section 982.158 (a) (b) states that the PHA must maintain complete and accurate accounts and other records for the program in accordance with HUD requirements, in a manner that permits a speedy and effective audit. The records must be in the form required by HUD, including requirements governing computerized or electronic forms of record-keeping. Also, the PHA must furnish HUD accounts and other records, reports, documents, and information, as required by HUD. CAUSE The Program’s internal controls and procedures over the accounting records failed to assure that the equity balances were properly calculated and reported in the VMS. EFFECT The Program is not reporting the correct balances of restricted net position and unrestricted net position to HUD. RECOMMENDATION I recommend management to prepare an analysis of the equity balances and adjust or correct any errors reported in the VMS. QUESTIONED COSTS None PRIOR YEAR FINDING This finding was presented in prior year Schedule of Findings and Questioned Costs (2022-009). VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION Instructions were given to the Program staff to strengthen existing internal controls and procedures to ensure the equity balances were properly calculated and reported in the Voucher Management System (VMS). Also, the Program staff were instructed to analyze previous equity balances reported in the VMS and realize any necessary corrections.
Show full finding ▾Hide full finding ▴FINDING NUMBER 2023-008 FEDERAL PROGRAM HOUSING VOUCHER CLUSTER: SECTION 8 HOUSING CHOICE VOUCHERS/ EMERGENCY HOUSING VOUCHERS (ASSISTANCE LISTING NUMBERS 14.871/ 14.EHV) U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT TYPE OF FINDING MATERIAL WEAKNESS AND INSTANCE OF NONCOMPLIANCE COMPLIANCE REQUIREMENT SPECIAL TEST- ROLLING FORWARD EQUITY BALANCES CONDITION During the examination of the program accounting records, I noted that the equity balances reported in the Voucher Management System (VMS) for the month of June 30, 2023, have differences with the amounts reported in the draft audited financial information for the fiscal year ended June 30, 2023, submitted through the FASS-PH system, as follows: VMS FASS-PH DIFFERENCE HCV - Restricted Net Position Funds (RNP) $ 34,760 $ 52,596 $ (17,836) HCV -Unrestricted Net Position Funds (UNP) $ 66,142 $ 42,043 $ 24,099 Emergency Housing Vouchers - Restricted Net Position Funds (RNP) $ 575 $ 19,471 $ (18,896) Emergency Housing Vouchers - Unrestricted Net Position Funds (UNP) $ (3,391) $ 6,693 $ (10,084) CRITERIA Code of Federal Regulations, 24 CFR, Section 982.158 (a) (b) states that the PHA must maintain complete and accurate accounts and other records for the program in accordance with HUD requirements, in a manner that permits a speedy and effective audit. The records must be in the form required by HUD, including requirements governing computerized or electronic forms of record-keeping. Also, the PHA must furnish HUD accounts and other records, reports, documents, and information, as required by HUD. CAUSE The Program’s internal controls and procedures over the accounting records failed to assure that the equity balances were properly calculated and reported in the VMS. EFFECT The Program is not reporting the correct balances of restricted net position and unrestricted net position to HUD. RECOMMENDATION I recommend management to prepare an analysis of the equity balances and adjust or correct any errors reported in the VMS. QUESTIONED COSTS None PRIOR YEAR FINDING This finding was presented in prior year Schedule of Findings and Questioned Costs (2022-009). VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION Instructions were given to the Program staff to strengthen existing internal controls and procedures to ensure the equity balances were properly calculated and reported in the Voucher Management System (VMS). Also, the Program staff were instructed to analyze previous equity balances reported in the VMS and realize any necessary corrections.
Instructions were given to the Program staff to strengthen existing internal controls and procedures to ensure the equity balances were properly calculated and reported in the Voucher Management System (VMS). Also, the Program staff were instructed to analyze previous equity balances reported in the VMS, an realize any necessary corrections.
2022-009
FAC accepted this audit on April 3, 2024 — management decision was due October 3, 2024.
FINDING 2022-005 FEDERAL PROGRAMS COMMUNITY DEVELOPMENT BLOCK GRANTS- ENTITLEMENT GRANTS CLUSTER: COMMUNITY DEVELOPMENT BLOCK GRANT/ ENTITLEMENT GRANTS (ASSISTANCE LISTING NUMBER 14.218) U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT TYPE OF FINDING COMPLIANCE AND INTERNAL CONTROL COMPLIANCE REQUIREMENT PROGRAM INCOME CONDITION During the Program Income test, I noted that the Municipality did not record $96,750 of program income received during the fiscal year 2021-2022, in the Integrated Disbursement and Information System (IDIS) (OMB No. 2506-0077). This program income was recorded in IDIS in the fiscal year 2022-2023. CRITERIA Code of Federal Regulations 24, Section 570.504 (a), stated that the receipts and expenditures of program income shall be recorded as part of the financial transactions of the grant program. Also, 24 CFR 570.504(b)(2)(ii) states that if the recipient chooses to retain program income, that program income shall be disbursed for eligible activities before additional cash withdrawals are made from the U. S. Treasury. CAUSE During the fiscal year 2021-2022, the Program did not maintain appropriate internal controls to ensure that all program income transactions were recorded timely on the IDIS system. EFFECT The program income funds were not available in IDIS, to draw down to pay for eligible activities. RECOMMENDATION I recommend management to continue improving the internal controls and procedures to ensure that the financial transactions related to the program income are properly recorded in the IDIS System. QUESTIONED COSTS None PRIOR YEAR FINDING Not applicable.
Show full finding ▾Hide full finding ▴FINDING 2022-005 FEDERAL PROGRAMS COMMUNITY DEVELOPMENT BLOCK GRANTS- ENTITLEMENT GRANTS CLUSTER: COMMUNITY DEVELOPMENT BLOCK GRANT/ ENTITLEMENT GRANTS (ASSISTANCE LISTING NUMBER 14.218) U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT TYPE OF FINDING COMPLIANCE AND INTERNAL CONTROL COMPLIANCE REQUIREMENT PROGRAM INCOME CONDITION During the Program Income test, I noted that the Municipality did not record $96,750 of program income received during the fiscal year 2021-2022, in the Integrated Disbursement and Information System (IDIS) (OMB No. 2506-0077). This program income was recorded in IDIS in the fiscal year 2022-2023. CRITERIA Code of Federal Regulations 24, Section 570.504 (a), stated that the receipts and expenditures of program income shall be recorded as part of the financial transactions of the grant program. Also, 24 CFR 570.504(b)(2)(ii) states that if the recipient chooses to retain program income, that program income shall be disbursed for eligible activities before additional cash withdrawals are made from the U. S. Treasury. CAUSE During the fiscal year 2021-2022, the Program did not maintain appropriate internal controls to ensure that all program income transactions were recorded timely on the IDIS system. EFFECT The program income funds were not available in IDIS, to draw down to pay for eligible activities. RECOMMENDATION I recommend management to continue improving the internal controls and procedures to ensure that the financial transactions related to the program income are properly recorded in the IDIS System. QUESTIONED COSTS None PRIOR YEAR FINDING Not applicable.
Instructions were given to the Program staff to ensure timely registration of program income transactions in the Integrated Disbursement and Information System (IDIS). During the fiscal year 2021-2022, changes occurred in the program's management staff, which may have led to the situation mentioned in the finding.
FINDING NUMBER 2022-006 FEDERAL PROGRAM HOUSING VOUCHER CLUSTER: SECTION 8 HOUSING CHOICE VOUCHERS/ EMERGENCY HOUSING VOUCHERS (ASSISTANCE LISTING NUMBERS 14.871/ 14.EHV) U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT TYPE OF FINDING COMPLIANCE AND INTERNAL CONTROL COMPLIANCE REQUIREMENT ELIGIBILITY CONDITION During the Eligibility test, fifteen (15) participants’ files were examined related to the reexamination process, and noted the following conditions: a. In one (1) reexamination, the housing assistant payment (HAP) calculation was not performed using the applicable payment standard. The application of the correct payment standard modifies the HAP amount paid. b. In five (5) participants’ files, the Enterprise Income Verification (EIV) report corresponding to the annual reexamination selected for evaluation, was not available for my review. c. Twelve (12) files did not include the release form, HUD-9886, signed by all the family members who were 18 years or older. d. Five (5) files did not include certification of the verification in the sex offenders register for one or more adult family member. CRITERIA Code of Federal Regulation 24, Section 982.516 (a) states that the PHA must conduct a reexamination of family income and composition at least annually; (2) the PHA must obtain and document in the tenant file third party verification of the following factors or must document in the file why third party verification was not available: (A) reported family annual income; (B) the value of assets; (C) expenses related to deductions from annual income; and (D) other factors that affects the determination of adjusted income. Also, 24 CFR 982.516(g)(1) states that as a condition of admission to or continued assistance under the program, the PHA shall require the family head, and such other family members as the PHA designates, to execute a HUD-approved release and consent form (including any release and consent as required under § 5.230 of this title) authorizing any depository or private source of income, or any Federal, State or local agency, to furnish or release to the PHA or HUD such information as the PHA or HUD determines to be necessary. CRITERIA Code of Federal Regulation 24, Section 982.503 (a) states that (1) HUD publishes the fair market rents for each market area in the United States. The PHA must adopt a payment standard schedule that establishes voucher payment standard amounts for each FMR area in the PHA jurisdiction. For each FMR area, the PHA must establish payment standard amounts for each “unit size.” Unit size is measured by number of bedrooms (zero-bedroom, one-bedroom, and so on). (2) The payment standard amounts on the PHA schedule are used to calculate the monthly housing assistance payment for a family (§982.505). In accordance with the regulations at 24 CFR 5.856 and 5.905, O/As and PHAs must perform necessary criminal history background checks to determine if an applicant, or a member of an applicant’s household, is subject to a lifetime registration requirement under a state sex offender registration program. This check must be carried out with respects to the State in which the housing is located and with respect to States where the applicant and members of the applicant’s household are known to have resided. CAUSE The Program’s internal controls and procedures failed to ensure that the reexamination and HAP determination processes were performed according to program requirements and guidelines. Also, the internal controls did not ensure that all the required documentation necessary for the reexamination process was obtained from the participants. EFFECT The lack of monitoring and adequate supporting documentation during the reexamination processes could lead to the approval and disbursement of improper amounts and the approval of benefits to persons that do not qualify. RECOMMENDATION I recommend management to continue strengthening its internal controls and procedures to ensure that the reexamination and HAP determination processes are performed according to program requirements and guidelines. Also, management must reinforce the internal controls to ensure that all the required documentation necessary for the reexamination process is obtained in a timely manner. QUESTIONED COSTS None PRIOR YEAR FINDING Not applicable. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION Instructions were given to the Program staff to strengthening existing internal controls and procedures to ensure that the reexamination and HAP determination processes are performed according to program requirements and guidelines, and to obtain in a timely manner all of the required documentation for each reexamination executed. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION Instructions were given to the Program staff to ensure timely registration of program income transactions in the Integrated Disbursement and Information System (IDIS). During the fiscal year 2021-2022, changes occurred in the program's management staff, which may have led to the situation mentioned in the finding.
Show full finding ▾Hide full finding ▴FINDING NUMBER 2022-006 FEDERAL PROGRAM HOUSING VOUCHER CLUSTER: SECTION 8 HOUSING CHOICE VOUCHERS/ EMERGENCY HOUSING VOUCHERS (ASSISTANCE LISTING NUMBERS 14.871/ 14.EHV) U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT TYPE OF FINDING COMPLIANCE AND INTERNAL CONTROL COMPLIANCE REQUIREMENT ELIGIBILITY CONDITION During the Eligibility test, fifteen (15) participants’ files were examined related to the reexamination process, and noted the following conditions: a. In one (1) reexamination, the housing assistant payment (HAP) calculation was not performed using the applicable payment standard. The application of the correct payment standard modifies the HAP amount paid. b. In five (5) participants’ files, the Enterprise Income Verification (EIV) report corresponding to the annual reexamination selected for evaluation, was not available for my review. c. Twelve (12) files did not include the release form, HUD-9886, signed by all the family members who were 18 years or older. d. Five (5) files did not include certification of the verification in the sex offenders register for one or more adult family member. CRITERIA Code of Federal Regulation 24, Section 982.516 (a) states that the PHA must conduct a reexamination of family income and composition at least annually; (2) the PHA must obtain and document in the tenant file third party verification of the following factors or must document in the file why third party verification was not available: (A) reported family annual income; (B) the value of assets; (C) expenses related to deductions from annual income; and (D) other factors that affects the determination of adjusted income. Also, 24 CFR 982.516(g)(1) states that as a condition of admission to or continued assistance under the program, the PHA shall require the family head, and such other family members as the PHA designates, to execute a HUD-approved release and consent form (including any release and consent as required under § 5.230 of this title) authorizing any depository or private source of income, or any Federal, State or local agency, to furnish or release to the PHA or HUD such information as the PHA or HUD determines to be necessary. CRITERIA Code of Federal Regulation 24, Section 982.503 (a) states that (1) HUD publishes the fair market rents for each market area in the United States. The PHA must adopt a payment standard schedule that establishes voucher payment standard amounts for each FMR area in the PHA jurisdiction. For each FMR area, the PHA must establish payment standard amounts for each “unit size.” Unit size is measured by number of bedrooms (zero-bedroom, one-bedroom, and so on). (2) The payment standard amounts on the PHA schedule are used to calculate the monthly housing assistance payment for a family (§982.505). In accordance with the regulations at 24 CFR 5.856 and 5.905, O/As and PHAs must perform necessary criminal history background checks to determine if an applicant, or a member of an applicant’s household, is subject to a lifetime registration requirement under a state sex offender registration program. This check must be carried out with respects to the State in which the housing is located and with respect to States where the applicant and members of the applicant’s household are known to have resided. CAUSE The Program’s internal controls and procedures failed to ensure that the reexamination and HAP determination processes were performed according to program requirements and guidelines. Also, the internal controls did not ensure that all the required documentation necessary for the reexamination process was obtained from the participants. EFFECT The lack of monitoring and adequate supporting documentation during the reexamination processes could lead to the approval and disbursement of improper amounts and the approval of benefits to persons that do not qualify. RECOMMENDATION I recommend management to continue strengthening its internal controls and procedures to ensure that the reexamination and HAP determination processes are performed according to program requirements and guidelines. Also, management must reinforce the internal controls to ensure that all the required documentation necessary for the reexamination process is obtained in a timely manner. QUESTIONED COSTS None PRIOR YEAR FINDING Not applicable. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION Instructions were given to the Program staff to strengthening existing internal controls and procedures to ensure that the reexamination and HAP determination processes are performed according to program requirements and guidelines, and to obtain in a timely manner all of the required documentation for each reexamination executed. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION Instructions were given to the Program staff to ensure timely registration of program income transactions in the Integrated Disbursement and Information System (IDIS). During the fiscal year 2021-2022, changes occurred in the program's management staff, which may have led to the situation mentioned in the finding.
Instructions were given to the Program staff to strengthening existing internal controls and procedures to ensure that the reexamination and HAP determination processes are performed according to program requirements and guidelines, and to obtain in a timely manner all of the required documentation for each reexamination executed.
FINDING NUMBER 2022-007 FEDERAL PROGRAM HOUSING VOUCHER CLUSTER: SECTION 8 HOUSING CHOICE VOUCHERS/ COVID-19 SECTION 8 HOUSING CHOICE VOUCHERS/ EMERGENCY HOUSING VOUCHERS (ASSISTANCE LISTING NUMBERS 14.871/ 14.HCC/ 14.EHV) U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT TYPE OF FINDING COMPLIANCE AND INTERNAL CONTROL COMPLIANCE REQUIIREMENT REPORTING CONDITION The Program did not complied with the financial and special reporting requirements, as follows: 1. I performed a special reporting test over fifteen (15) participants' files and found the following situations: In two (2) cases, I did not find evidence of the submission to HUD of the Form HUD-50058, Family Report (OMB No. 2577-0083), corresponding to the reexamination audited. In one (1) case, the Form HUD-50058, Family Report (OMB No. 2577- 0083) was submitted to HUD 240 days after its effective date. 2. I noted that GAAP-based unaudited and audited financial information for the fiscal year ended June 30, 2022, were not submitted in time. CRITERIA Code of Federal Regulations 24, part 908.104 (c), electronic transmission of data, states that electronic transmission of data consists of submission of all required data fields (correctly formatted) from the forms HUD-050058 and HUD-50058-FSS telephonically, in accordance with HUD instructions. Regardless of whether an HA obtains the ADP system itself or contracts with a service bureau to provide the system, the software must be periodically updated to incorporate changes or revisions in legislation, regulations, handbooks, notices, or HUD electronic transmission data format requirements. Also, CFR 24 982.158 (a), states that the PHA must maintain complete and accurate accounts and other records for the program in accordance with HUD requirements, in a manner that permits a speedy and effective audit. The records must be in the form required by HUD, including requirements governing computerized or electronic forms of record-keeping. 24 CFR, Section 5.801 (b), submission of financial information. Entities to which this subpart is applicable must provide to HUD such financial information as required by HUD. Such information must be provided on an annual basis, except as required more frequently under paragraph (c) (4) of this section. This information must be: (1) prepared in accordance with Generally Accepted Accounting Principles; (2) submitted electronically to HUD through the internet, or in such other electronic format designated by HUD, or in such non-electronic format as HUD may allow if the burden or cost of electronic reporting is determined by HUD to be excessive. In addition, Section 5.801 (d), reporting compliance dates. Unaudited financial statements will be required 60 days after the PHA's fiscal year end, and audited financial statements will then be required no later than 9 months after the PHA's fiscal year end, in accordance with the Single Audit Act and 2 CFR part 200, subpart F. CAUSE The internal controls and procedures maintained by the Program failed to ensure the timely submission to HUD of the Form HUD-50058, Family Report (OMB No. 2577- 0083) and the GAAP based unaudited and audited financial information. EFFECT The lack of proper filing of required financial reports may lead HUD to impose special conditions regarding the use of funds to the Municipality. Also, HUD relies on key line items of the report to determine the reasonableness of the data submitted for the purposes of calculating funding under the program. Accordingly, future funding for the Municipality may be affected negatively. RECOMMENDATION The Municipality should continue strengthening the established internal controls and procedures to submit to HUD the Form HUD-50058, Family Report (OMB No. 2577- 0083) and the financial reports according to applicable requirements. QUESTIONED COSTS None PRIOR YEAR FINDING This finding was presented in prior year Schedule of Findings and Questioned Costs (2021-004). VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION Instructions were given to the Program staff to strengthening existing internal controls and procedures to ensure the submission of the Form HUD-50058, Family Report (OMB No. 2577-0083), and the financial reports according to applicable requirements. The audited financial data schedule for the fiscal year 2021-2022 will be submitted as soon as the Single Audit Report be finally issued by the external auditors.
Show full finding ▾Hide full finding ▴FINDING NUMBER 2022-007 FEDERAL PROGRAM HOUSING VOUCHER CLUSTER: SECTION 8 HOUSING CHOICE VOUCHERS/ COVID-19 SECTION 8 HOUSING CHOICE VOUCHERS/ EMERGENCY HOUSING VOUCHERS (ASSISTANCE LISTING NUMBERS 14.871/ 14.HCC/ 14.EHV) U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT TYPE OF FINDING COMPLIANCE AND INTERNAL CONTROL COMPLIANCE REQUIIREMENT REPORTING CONDITION The Program did not complied with the financial and special reporting requirements, as follows: 1. I performed a special reporting test over fifteen (15) participants' files and found the following situations: In two (2) cases, I did not find evidence of the submission to HUD of the Form HUD-50058, Family Report (OMB No. 2577-0083), corresponding to the reexamination audited. In one (1) case, the Form HUD-50058, Family Report (OMB No. 2577- 0083) was submitted to HUD 240 days after its effective date. 2. I noted that GAAP-based unaudited and audited financial information for the fiscal year ended June 30, 2022, were not submitted in time. CRITERIA Code of Federal Regulations 24, part 908.104 (c), electronic transmission of data, states that electronic transmission of data consists of submission of all required data fields (correctly formatted) from the forms HUD-050058 and HUD-50058-FSS telephonically, in accordance with HUD instructions. Regardless of whether an HA obtains the ADP system itself or contracts with a service bureau to provide the system, the software must be periodically updated to incorporate changes or revisions in legislation, regulations, handbooks, notices, or HUD electronic transmission data format requirements. Also, CFR 24 982.158 (a), states that the PHA must maintain complete and accurate accounts and other records for the program in accordance with HUD requirements, in a manner that permits a speedy and effective audit. The records must be in the form required by HUD, including requirements governing computerized or electronic forms of record-keeping. 24 CFR, Section 5.801 (b), submission of financial information. Entities to which this subpart is applicable must provide to HUD such financial information as required by HUD. Such information must be provided on an annual basis, except as required more frequently under paragraph (c) (4) of this section. This information must be: (1) prepared in accordance with Generally Accepted Accounting Principles; (2) submitted electronically to HUD through the internet, or in such other electronic format designated by HUD, or in such non-electronic format as HUD may allow if the burden or cost of electronic reporting is determined by HUD to be excessive. In addition, Section 5.801 (d), reporting compliance dates. Unaudited financial statements will be required 60 days after the PHA's fiscal year end, and audited financial statements will then be required no later than 9 months after the PHA's fiscal year end, in accordance with the Single Audit Act and 2 CFR part 200, subpart F. CAUSE The internal controls and procedures maintained by the Program failed to ensure the timely submission to HUD of the Form HUD-50058, Family Report (OMB No. 2577- 0083) and the GAAP based unaudited and audited financial information. EFFECT The lack of proper filing of required financial reports may lead HUD to impose special conditions regarding the use of funds to the Municipality. Also, HUD relies on key line items of the report to determine the reasonableness of the data submitted for the purposes of calculating funding under the program. Accordingly, future funding for the Municipality may be affected negatively. RECOMMENDATION The Municipality should continue strengthening the established internal controls and procedures to submit to HUD the Form HUD-50058, Family Report (OMB No. 2577- 0083) and the financial reports according to applicable requirements. QUESTIONED COSTS None PRIOR YEAR FINDING This finding was presented in prior year Schedule of Findings and Questioned Costs (2021-004). VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION Instructions were given to the Program staff to strengthening existing internal controls and procedures to ensure the submission of the Form HUD-50058, Family Report (OMB No. 2577-0083), and the financial reports according to applicable requirements. The audited financial data schedule for the fiscal year 2021-2022 will be submitted as soon as the Single Audit Report be finally issued by the external auditors.
Instructions were given to the Program staff to strengthening existing internal controls and procedures to ensure the submission of the Form HUD-50058, Family Report (OMB No. 2577-0083), and the financial reports according to applicable requirements. The audited financial data schedule for the fiscal year 2021- 2022 will be submitted as soon as the Single Audit Report be finally issued by the external auditors.
2021-004
FINDING NUMBER 2022-008 FEDERAL PROGRAM HOUSING VOUCHER CLUSTER: SECTION 8 HOUSING CHOICE VOUCHERS (ASSISTANCE LISTING NUMBER 14.871) U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT TYPE OF FINDING COMPLIANCE AND INTERNAL CONTROL COMPLIANCE REQUIREMENT SPECIAL TEST- HOUSING QUALITY STANDARDS INSPECTIONS CONDITION The Program staff did not perform the required quality control re-inspections during fiscal year 2021-2022. CRITERIA Code of Federal Regulations 24, Section 982.405 (b) states that the PHA must conduct supervisory quality control HQS inspections. 24 CFR 985.2 (b) specifies the minimum sample size requirements for quality control of HQS inspections. CAUSE The Program’s internal controls and procedures fail to ensure that the quality control re-inspections were performed during the fiscal year 2021-2022. EFFECT The lack of quality re-inspections procedures could cause that possible errors made during the ongoing re-inspections process could be detected and corrected. RECOMMENDATION I recommend management to continue strengthening the internal controls and procedures to ensure that required quality control re-inspections are performed annually. QUESTIONED COSTS None PRIOR YEAR FINDING Not applicable. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION Instructions were given to the Program staff to strengthening existing internal controls and procedures to ensure the required quality control re-inspections are performed annually.
Show full finding ▾Hide full finding ▴FINDING NUMBER 2022-008 FEDERAL PROGRAM HOUSING VOUCHER CLUSTER: SECTION 8 HOUSING CHOICE VOUCHERS (ASSISTANCE LISTING NUMBER 14.871) U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT TYPE OF FINDING COMPLIANCE AND INTERNAL CONTROL COMPLIANCE REQUIREMENT SPECIAL TEST- HOUSING QUALITY STANDARDS INSPECTIONS CONDITION The Program staff did not perform the required quality control re-inspections during fiscal year 2021-2022. CRITERIA Code of Federal Regulations 24, Section 982.405 (b) states that the PHA must conduct supervisory quality control HQS inspections. 24 CFR 985.2 (b) specifies the minimum sample size requirements for quality control of HQS inspections. CAUSE The Program’s internal controls and procedures fail to ensure that the quality control re-inspections were performed during the fiscal year 2021-2022. EFFECT The lack of quality re-inspections procedures could cause that possible errors made during the ongoing re-inspections process could be detected and corrected. RECOMMENDATION I recommend management to continue strengthening the internal controls and procedures to ensure that required quality control re-inspections are performed annually. QUESTIONED COSTS None PRIOR YEAR FINDING Not applicable. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION Instructions were given to the Program staff to strengthening existing internal controls and procedures to ensure the required quality control re-inspections are performed annually.
Instructions were given to the Program staff to strengthening existing internal controls and procedures to ensure the required quality control re-inspections are performed annually.
FINDING NUMBER 2022-009 FEDERAL PROGRAM HOUSING VOUCHER CLUSTER: SECTION 8 HOUSING CHOICE VOUCHERS/ EMERGENCY HOUSING VOUCHERS (ASSISTANCE LISTING NUMBERS 14.871/ 14.EHV) U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT TYPE OF FINDING COMPLIANCE AND INTERNAL CONTROL COMPLIANCE REQUIIREMENT SPECIAL TEST- ROLLING FORWARD EQUITY BALANCES CONDITION During the examination of the program accounting records, I noted that the equity balances reported in the Voucher Management System (VMS) for the month of June 30, 2022, have differences with the amounts reported in the audited financial information for the fiscal year ended June 30, 2022, submitted through the FASS_x0002_PH system, as follows: CRITERIA Code of Federal Regulations, 24 CFR, Section 982.158 (a) (b) states that the PHA must maintain complete and accurate accounts and other records for the program in accordance with HUD requirements, in a manner that permits a speedy and effective audit. The records must be in the form required by HUD, including requirements governing computerized or electronic forms of record-keeping. Also, the PHA must furnish HUD accounts and other records, reports, documents, and information, as required by HUD. CAUSE The Program’s internal controls and procedures over the accounting records failed to assure that the equity balances were properly calculated and reported in the VMS. EFFECT The Program is not reporting the correct balances of restricted net position and unrestricted net position to HUD.RECOMMENDATION I recommended management to prepare an analysis of the equity balances and adjust or correct any errors reported in the VMS. QUESTIONED COSTS None PRIOR YEAR FINDING Not applicable. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION Instructions were given to the Program staff to strengthen existing internal controls and procedures to ensure the equity balances were properly calculated and reported in the VMS. Also, the Program staff was instructed to analyze previous equity balances reported in the VMS, an realize any necessary corrections.
Show full finding ▾Hide full finding ▴FINDING NUMBER 2022-009 FEDERAL PROGRAM HOUSING VOUCHER CLUSTER: SECTION 8 HOUSING CHOICE VOUCHERS/ EMERGENCY HOUSING VOUCHERS (ASSISTANCE LISTING NUMBERS 14.871/ 14.EHV) U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT TYPE OF FINDING COMPLIANCE AND INTERNAL CONTROL COMPLIANCE REQUIIREMENT SPECIAL TEST- ROLLING FORWARD EQUITY BALANCES CONDITION During the examination of the program accounting records, I noted that the equity balances reported in the Voucher Management System (VMS) for the month of June 30, 2022, have differences with the amounts reported in the audited financial information for the fiscal year ended June 30, 2022, submitted through the FASS_x0002_PH system, as follows: CRITERIA Code of Federal Regulations, 24 CFR, Section 982.158 (a) (b) states that the PHA must maintain complete and accurate accounts and other records for the program in accordance with HUD requirements, in a manner that permits a speedy and effective audit. The records must be in the form required by HUD, including requirements governing computerized or electronic forms of record-keeping. Also, the PHA must furnish HUD accounts and other records, reports, documents, and information, as required by HUD. CAUSE The Program’s internal controls and procedures over the accounting records failed to assure that the equity balances were properly calculated and reported in the VMS. EFFECT The Program is not reporting the correct balances of restricted net position and unrestricted net position to HUD.RECOMMENDATION I recommended management to prepare an analysis of the equity balances and adjust or correct any errors reported in the VMS. QUESTIONED COSTS None PRIOR YEAR FINDING Not applicable. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION Instructions were given to the Program staff to strengthen existing internal controls and procedures to ensure the equity balances were properly calculated and reported in the VMS. Also, the Program staff was instructed to analyze previous equity balances reported in the VMS, an realize any necessary corrections.
Instructions were given to the Program staff to strengthen existing internal controls and procedures to ensure the equity balances were properly calculated and reported in the VMS. Also, the Program staff was instructed to analyze previous equity balances reported in the VMS, an realize any necessary corrections
FAC accepted this audit on September 27, 2022 — management decision was due March 27, 2023.
During our Reporting Test, we noted that HUD - 52681 B report was submitted late for several months. Please see below for details: Month Date Filed October 2020 February 19, 2021 December 2020 February 19, 2021 February 2021 May 21, 2021 March 2021 May 21, 2021 April 2021 July 14, 2021 May 2021 July 14, 2021 Criteria or specific requirement: In accordance with Housing and Urban Development Agency (HUD) Reporting Requirements ? Voucher Management System, electronic submission of form HUD-52681-B data is a monthly requirement. The collection deadline for monthly submission is the 22nd of each month for submission of the prior month's data. Cause: The Municipality was facing a transition of personnel in the Federal Affairs Office, and the new appointed personnel was not aware of the exact due date. Effect: The lack of proper filing of required reports may lead HUD to impose special conditions regarding the use of funds to the Municipality. Also, HUD relies on key line items of the report to determine the reasonableness of the data submitted for the purposes of calculating funding under the program. Accordingly, future funding for the Municipality may be affected negatively. Recommendations: We recommend the Municipality to assign supervisory personnel to ensure that reports are filed on time. Also, a report filing dateline control sheet may be established by the Director of Federal Affairs Office, to ascertain that the office keeps track of due dates as required. Prior year finding: This finding was presented in prior year Schedule of Findings and Questioned Costs (2020-004). Questioned costs: N/A Views of responsible officials and planned corrective action: See the Municipality?s Corrective Action Plan.
Show full finding ▾Hide full finding ▴Finding 2021 - 003 Category: Reporting Program: 14.871 - Section 8 Housing Choice Vouchers Type of finding: Material Noncompliance / Material Weakness Condition: During our Reporting Test, we noted that HUD - 52681 B report was submitted late for several months. Please see below for details: Month Date Filed October 2020 February 19, 2021 December 2020 February 19, 2021 February 2021 May 21, 2021 March 2021 May 21, 2021 April 2021 July 14, 2021 May 2021 July 14, 2021 Criteria or specific requirement: In accordance with Housing and Urban Development Agency (HUD) Reporting Requirements ? Voucher Management System, electronic submission of form HUD-52681-B data is a monthly requirement. The collection deadline for monthly submission is the 22nd of each month for submission of the prior month's data. Cause: The Municipality was facing a transition of personnel in the Federal Affairs Office, and the new appointed personnel was not aware of the exact due date. Effect: The lack of proper filing of required reports may lead HUD to impose special conditions regarding the use of funds to the Municipality. Also, HUD relies on key line items of the report to determine the reasonableness of the data submitted for the purposes of calculating funding under the program. Accordingly, future funding for the Municipality may be affected negatively. Recommendations: We recommend the Municipality to assign supervisory personnel to ensure that reports are filed on time. Also, a report filing dateline control sheet may be established by the Director of Federal Affairs Office, to ascertain that the office keeps track of due dates as required. Prior year finding: This finding was presented in prior year Schedule of Findings and Questioned Costs (2020-004). Questioned costs: N/A Views of responsible officials and planned corrective action: See the Municipality?s Corrective Action Plan.
We gave instructions to the Program Staff to maintain a dateline control sheet to ascertain that required reports were submitted within the due date. Maria M. Boglio Rentas Finance Director October 31, 2022
2020-004
During our Reporting Test, we noted that GAAP-based unaudited financial information was not submitted. Criteria or specific requirement: The Uniform Financial Reporting Standards (24 CFR section 5.801) require PHAs to submit timely GAAP-based unaudited financial information electronically to the Housing and Urban Development Agency (HUD). The FASS-PH system is one of HUD?s main monitoring and oversight systems for the program. Cause: The Municipality was facing a transition of personnel in the Federal Affairs Office, and the new appointed personnel was not aware of the exact due date. Effect: The lack of proper filing of required reports may lead HUD to impose special conditions regarding the use of funds to the Municipality. Also, HUD relies on key line items of the report to determine the reasonableness of the data submitted for the purposes of calculating funding under the program. Accordingly, future funding for the Municipality may be affected negatively. Recommendations: We recommend the Municipality to assign supervisory personnel to ensure that reports are filed on time. Also, a report filing dateline control sheet may be established by the Director of Federal Affairs Office, to ascertain that the office keeps track of due dates as required. Prior year finding: This finding was presented in prior year Schedule of Findings and Questioned Costs (2020-005). Questioned costs: N/A Views of responsible officials and planned corrective action: See the Municipality?s Corrective Action Plan.
Show full finding ▾Hide full finding ▴Finding 2021 - 004 Category: Reporting Program: 14.871 - Section 8 Housing Choice Vouchers Type of finding: Material Noncompliance / Material Weakness Condition: During our Reporting Test, we noted that GAAP-based unaudited financial information was not submitted. Criteria or specific requirement: The Uniform Financial Reporting Standards (24 CFR section 5.801) require PHAs to submit timely GAAP-based unaudited financial information electronically to the Housing and Urban Development Agency (HUD). The FASS-PH system is one of HUD?s main monitoring and oversight systems for the program. Cause: The Municipality was facing a transition of personnel in the Federal Affairs Office, and the new appointed personnel was not aware of the exact due date. Effect: The lack of proper filing of required reports may lead HUD to impose special conditions regarding the use of funds to the Municipality. Also, HUD relies on key line items of the report to determine the reasonableness of the data submitted for the purposes of calculating funding under the program. Accordingly, future funding for the Municipality may be affected negatively. Recommendations: We recommend the Municipality to assign supervisory personnel to ensure that reports are filed on time. Also, a report filing dateline control sheet may be established by the Director of Federal Affairs Office, to ascertain that the office keeps track of due dates as required. Prior year finding: This finding was presented in prior year Schedule of Findings and Questioned Costs (2020-005). Questioned costs: N/A Views of responsible officials and planned corrective action: See the Municipality?s Corrective Action Plan.
We gave instructions to the Program Staff to maintain a dateline control sheet to ascertain that required reports were submitted within the due date. Maria M. Boglio Rentas Finance Director October 31, 2022
2020-005
FAC accepted this audit on June 28, 2021 — management decision was due December 28, 2021.
During our Reporting Test, we noted that for the month of March 2020, the HUD - 52681 B report was submitted on April 23, 2020 instead of no later than April 22, 2020, which was the due date.
Show full finding ▾Hide full finding ▴During our Reporting Test, we noted that for the month of March 2020, the HUD - 52681 B report was submitted on April 23, 2020 instead of no later than April 22, 2020, which was the due date.
We gave instructions to the Program Director to maintain a dateline control sheet to ascertain that required reports were submitted within the due date.Janice Rullan Federal Programs Director
During our Reporting Test, we noted that GAAP-based unaudited financial information was submitted after due date. Due to COVID-19 pandemic, the due date was moved to October 30, 2020 instead of August 31, 2020. However, the Municipality submitted the report on October 31, 2020 (1 day late).
Show full finding ▾Hide full finding ▴During our Reporting Test, we noted that GAAP-based unaudited financial information was submitted after due date. Due to COVID-19 pandemic, the due date was moved to October 30, 2020 instead of August 31, 2020. However, the Municipality submitted the report on October 31, 2020 (1 day late).
We gave instructions to the Program Director to maintain a dateline control sheet to ascertain that required reports were submitted within the due date.Janice Rullan Federal Programs Director
During our Special Conditions Test, we noted that the Municipality did not submitted to the United States Department of Agriculture (USDA) Form RD-442-2 Statement of Budget, Income and Equity.
Show full finding ▾Hide full finding ▴During our Special Conditions Test, we noted that the Municipality did not submitted to the United States Department of Agriculture (USDA) Form RD-442-2 Statement of Budget, Income and Equity.
The new Program Director is aware about the compliance requirement. We gave instructions to the Program Director to maintain a dateline control sheet to ascertain that required reports were submitted within the due dateJanice Rullan Federal Programs Director
FAC accepted this audit on September 29, 2020 — management decision was due March 29, 2021.
FINDING NUMBER 2019-005 FEDERAL PROGRAM HEAD START (CFDA NO. 93.600) U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES; PASS THROUGH COMMONWEALTH OF PUERTO RICO- ADMINISTRATION FOR CARE AND INTEGRAL DEVELOPMENT OF CHILDHOOD (ACUDEN) COMPLIANCE REQUIREMENT REPORTING TYPE OF FINDING NONCOMPLIANCE AND SIGNIFICANT DEFICIENCY CONDITION During the reporting test, I noted that the Program did not maintain an adequate set of accounting records to which the program closing reports could be traced. CRITERIA 2 CFR 200.302 (b)(3) states that the financial management system of each non-Federal entity must provide for records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. CAUSE The Program?s internal controls failed to maintain proper accounting records that adequately supports the financial reports submitted to the pass-through entity. EFFECT The program did not maintain its financial management system updated to assure compliance with the financial reporting requirements of the pass-through entity. RECOMMENDATION The Program must ascertain that the financial information submitted to the pass-through entity, is supported with complete and accurate accounting records. QUESTIONED COSTS None PRIOR YEAR FINDING Not applicable. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION We gave instructions to the Municipality?s Head Start Program staff direct their effort to update the financial information accounted for through the Municipality?s accounting software (SIMA), which is the primary data source for compiling the Municipality?s financial statements in accordance with the Generally Accepted Accounting Principles. Implementation Date: June 30, 2020 Responsible Person: Julio Rivera Rosario Head Start Program Director
Show full finding ▾Hide full finding ▴FINDING NUMBER 2019-005 FEDERAL PROGRAM HEAD START (CFDA NO. 93.600) U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES; PASS THROUGH COMMONWEALTH OF PUERTO RICO- ADMINISTRATION FOR CARE AND INTEGRAL DEVELOPMENT OF CHILDHOOD (ACUDEN) COMPLIANCE REQUIREMENT REPORTING TYPE OF FINDING NONCOMPLIANCE AND SIGNIFICANT DEFICIENCY CONDITION During the reporting test, I noted that the Program did not maintain an adequate set of accounting records to which the program closing reports could be traced. CRITERIA 2 CFR 200.302 (b)(3) states that the financial management system of each non-Federal entity must provide for records that identify adequately the source and application of funds for federally-funded activities. These records must contain information pertaining to Federal awards, authorizations, obligations, unobligated balances, assets, expenditures, income and interest and be supported by source documentation. CAUSE The Program?s internal controls failed to maintain proper accounting records that adequately supports the financial reports submitted to the pass-through entity. EFFECT The program did not maintain its financial management system updated to assure compliance with the financial reporting requirements of the pass-through entity. RECOMMENDATION The Program must ascertain that the financial information submitted to the pass-through entity, is supported with complete and accurate accounting records. QUESTIONED COSTS None PRIOR YEAR FINDING Not applicable. VIEWS OF RESPONSIBLE OFFICIALS AND PLANNED CORRECTIVE ACTION We gave instructions to the Municipality?s Head Start Program staff direct their effort to update the financial information accounted for through the Municipality?s accounting software (SIMA), which is the primary data source for compiling the Municipality?s financial statements in accordance with the Generally Accepted Accounting Principles. Implementation Date: June 30, 2020 Responsible Person: Julio Rivera Rosario Head Start Program Director
We gave instructions to the Municipality?s Head Start Program staff direct their effort to update the financial information accounted for through the Municipality?s accounting software (SIMA), which is the primary data source for compiling the Municipality?s financial statements in accordance with the Generally Accepted Accounting Principles. Implementation Date: June 30, 2020 Responsible Person: Julio Rivera Rosario Head Start Program Director
2018-005
FAC accepted this audit on April 12, 2019 — management decision was due October 12, 2019.
GSA_MIGRATION
Show full finding ▾Hide full finding ▴FAC accepted this audit on September 8, 2018 — management decision was due March 8, 2019.
GSA_MIGRATION
Show full finding ▾Hide full finding ▴GSA_MIGRATION
Show full finding ▾Hide full finding ▴GSA_MIGRATION
Show full finding ▾Hide full finding ▴GSA_MIGRATION
GSA_MIGRATION
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
Track your findings and corrective action plans across audit cycles.
Start tracking findings →Monitor subrecipient audit findings and compliance status.
Start monitoring →© 2026 Single Audit Intelligence. All data is public domain.