MUNICIPALITY OF CAROLINA

Finding 2021-001: PHA Non-Audited Financial Report Submission to HUD annually no later than 90 days after the end of fiscal year - Non-Compliance Criteria: The 24CFR 5.801 Title 24-Housing and Urban Development Part 5 - General HUD Program Requirements Subpart H - Uniform Financial Reporting Standards Sec. 5.801 established that each PHA must provide to HUD, on an annual basis, such financial information as required by HUD. This financial information must be: (1) Prepared in accordance with Generally Accepted Accounting Principles as further defined by HUD in supplementary guidance; (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; and (3) Submitted in such form and substance as prescribed by HUD. (c) Annual financial report filing dates. PHA's Financial Report must be submitted to HUD annually, no later than 90 days after the end of the fiscal year of the reporting period, and as otherwise provided by law. Condition: During our audit, we noted that GAAP-based unaudited financial information was submitted after due date. The Municipality submitted the report on December 13, 2021. Effect: The Municipality was in noncompliance with the Financial Reporting submission which could decrease the funds receive or the elimination of funds under Section 8 program. Questioned Costs: None Cause: The Municipality did not submit the Non-Audited Financial Report within the 90 days period provided by Law nor requested an extension of time to submit its unaudited financial information 15 days before the submission due date, by electronically submitting the requests through the FASS-PH Secure System website. Recommendation: We recommend the Municipality to instruct the HUD Coordinator in order this situation do not occur in the future. Views of responsible officials and planned corrective actions: The Municipality agrees with this finding and will adhere to the correction action plan on page 142 in this audit report Identification of a repeat finding: None