Delaware State Housing Authority Single Audit FY25
Single Audit – Fiscal Year Ended June 30, 2025
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Report Summary
Background
The mission of the Delaware State Housing Authority (DSHA) is to efficiently provide, and assist others to provide, quality, affordable housing opportunities and appropriate supportive services to low- and moderate-income Delawareans.
This engagement was performed in accordance with 31 Del.C. §4015, 29 Del.C. §2906 and Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Key Information and Findings
The financial statement report contains an unmodified opinion. An unmodified opinion is sometimes referred to as a “clean” opinion. It is one in which the auditor expresses an opinion that the financial statements present fairly, in all material respects, an entity’s financial position, results of operations, and cash flows in conformity with generally accepted accounting principles. In the Auditors’ opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.
The audit identified eight significant deficiencies, comprising two in internal controls over financial reporting and six regarding Uniform Guidance compliance. Notably, six of these findings are recurring from fiscal years 2022–2024, indicating that prior corrective action plans were not effectively implemented, thereby increasing compliance risk. Persistent issues exist across financial reporting, eligibility determination, reporting compliance, earmarking, and allowable costs. DHSA has communicated a correction action plan for each finding with target dates for remediation.
| Finding | Type of Finding | Federal Award Area | Condition | Status |
|---|---|---|---|---|
| 2025-001 | Significant Deficiency Finding | Financial Reporting Close Process | 3 Financial Statements Material Misstatements requiring adjusting journal entries | Repeat Finding 2022, 2023, 2024 |
| 2025-002 | Significant Deficiency Finding | Financial Statement Preparation Process | Lack of necessary staffing to timely and accurately prepare Financial Statements | |
| 2025-003 | Significant Deficiency in Internal Controls over Compliance Requirement Finding | COVID-19 Emergency Rental Assistance on Eligibility; Reporting | 4 of 60 lacked eligibility income verification supporting documentation; 4 of 60 income determination errors | Repeat Finding 2024 |
| 2025-004 | Significant Deficiency in Internal Controls over Compliance Requirement Finding | COVID-19 Emergency Rental Assistance on Reporting; Earmarking | Procedures lacked quarterly report preparation and review requirements; Evidence to support administrative and housing stability service obligation amounts and unique households not retained; 12/31/24 report contained errors | Repeat Finding 2024 |
| 2025-005 | Significant Deficiency in Internal Controls over Compliance Requirement Finding | COVID-19 Homeowner Assistance Fund Program on Eligibility | DHSA assigned a single consultant to process and approve the majority of Homeowner Assistance Fund Program assistance paid during year ended 6/30/25 | |
| 2025-006 | Significant Deficiency in Internal Controls over Compliance Requirement Finding | COVID-19 Homeowner Assistance Fund Program on Eligibility; Earmarking; Reporting | 6 of 25 cases applicant income was not calculated per income determination policy; 8 of 25 home repair cases did not have a policy requiring documentation of applicant income | Repeat Finding 2024 |
| 2025-007 | Significant Deficiency in Internal Controls over Compliance Requirement Finding | COVID-19 Homeowner Assistance Fund Program on Reporting | Supporting documentation for administrative expenses or services, counseling, and education amounts were not retained for HAF Quarterly 12/31/24 & 6/30/25 reports; Annual Report filed late (due 11/15/24, file 12/13/24) | Repeat Finding 2024 |
| 2025-008 | Significant Deficiency in Internal Controls over Compliance Requirement Finding | COVID-19 Emergency Rental Assistance on Allowable Cost/Eligibility | ERA program identified $168,055 in potentially fraudulent assistance. While a portion was recovered, $82,709 remained uncollected as of 6/30/25, with no further resolution pursued. | Repeat Finding 2024 |