DSHA Single Audit Identifies 8 Deficiencies, 6 Recurring
Summary
The Delaware Office of State Auditor published its Single Audit for the Delaware State Housing Authority (DSHA) covering fiscal year ended June 30, 2025. The audit identified eight significant deficiencies: two in internal controls over financial reporting and six regarding Uniform Guidance compliance. 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. Findings include $168,055 in potentially fraudulent COVID-19 Emergency Rental Assistance, of which $82,709 remained uncollected as of June 30, 2025. DSHA has communicated a corrective action plan for each finding with target dates for remediation.
“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.”
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What changed
The Delaware Office of State Auditor published its FY25 Single Audit of the Delaware State Housing Authority (DSHA). The financial statement received an unmodified (clean) opinion, and the schedule of expenditures of federal awards was found fairly stated. However, eight significant deficiencies were identified: two related to the financial reporting close process and financial statement preparation, and six regarding Uniform Guidance compliance in COVID-19 Emergency Rental Assistance and COVID-19 Homeowner Assistance Fund Program operations. Six of these findings—2025-001, 2025-003, 2025-004, 2025-006, 2025-007, and 2025-008—are repeat findings from fiscal years 2022–2024, indicating persistent non-implementation of corrective actions. Finding 2025-008 identifies $168,055 in potentially fraudulent ERA assistance, with $82,709 remaining uncollected as of June 30, 2025. Findings 2025-003 and 2025-006 detail eligibility verification and income determination errors in sampled cases. Findings 2025-004 and 2025-007 detail reporting compliance failures including late filings and missing supporting documentation.
Affected parties receiving federal housing assistance funds under COVID-19 programs should review eligibility determination and income documentation practices, as the audit identified recurring deficiencies in these areas across multiple fiscal years. Organizations administering COVID-19 Emergency Rental Assistance and Homeowner Assistance Fund programs should ensure adequate staffing for financial statement preparation and quarterly reporting, and should retain all supporting documentation for administrative expenses and services. The six repeat findings suggest that prior corrective action plans were insufficiently designed or implemented—a finding that increases audit scrutiny risk for DSHA going forward. Entities with similar federal award compliance obligations should review their own eligibility verification, reporting, and documentation controls.
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Apr 22, 2026GovPing captured this document from the original source. If the source has since changed or been removed, this is the text as it existed at that time.
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Single Audit – Fiscal Year Ended June 30, 2025
April 21, 2026
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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 |
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