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DSHA Single Audit Identifies 8 Deficiencies, 6 Recurring

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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, 2026

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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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Category: 2. State Agencies and Schools, Audit Reports, Delaware State Housing Authority, Fiscal Year 2025 Filter your search by:

Category

Categories Select Category 1. Report Type Annual Comprehensive Financial Report (ACFR) Audit Reports Special Reports Uniform Guidance Single Audit 2. State Agencies and Schools All State Agencies Charter Schools Courts Delaware State Housing Authority DelDOT Department of Agriculture Department of Education Department of Finance Department of Health and Social Services Department of Labor Department of Natural Resources and Environmental Control Department of State Diamond State Port Corporation Fire Commission Office of the State Treasurer School Districts 3. Other Entities Counties Fire Companies Long Term Care Facilities Municipalities Opioid Grant Recipients Public Private Partnerships Public Universities Uncategorized Year Under Audit Calendar Year 2019 Calendar Year 2020 Calendar Year 2021 Calendar Year 2022 Calendar Year 2023 Calendar Year 2024 Fiscal Year 2020 Fiscal Year 2021 Fiscal Year 2022 Fiscal Year 2023 Fiscal Year 2024 Fiscal Year 2025

Published Date

Select Year 2026 2025 2024 Reports Archive

CFR references

2 CFR Part 200

Citations

2 CFR Part 200 Uniform Administrative Requirements Cost Principles audit requirements for federal awards

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Last updated

Classification

Agency
DE Auditor
Published
April 21st, 2026
Instrument
Notice
Branch
Executive
Legal weight
Non-binding
Stage
Final
Change scope
Substantive

Who this affects

Applies to
Government agencies Healthcare providers Nonprofits
Industry sector
5311 Real Estate
Activity scope
Single audit compliance Federal award administration Eligibility verification
Geographic scope
US-DE US-DE

Taxonomy

Primary area
Public Health
Operational domain
Compliance
Compliance frameworks
Uniform Guidance
Topics
Financial Services Consumer Finance

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