Finding 2024-001: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 223(f)/207)
Statement of Condition: During the year ending December 31, 2024, the Organization did not obtain the required signatures of tenants on the HUD-50059 at recertification.
Criteria: HUD Handbook 4530.3 REV-1 CHG-3, Chapter 7 section 3 states that signature of the head, co-head, spouse and all other adult members of the household on the HUD-50059 are required prior to submitting to the Contract Administrator or HUD.
Effect: Noncompliance with HUD regulations and potential errors in rental assistance.
Cause: Management oversight.
Context: Of the seven tenant files tested for eligibility compliance, two of the files did not have the signature of the tenant on the HUD-50059 prior to submitting to HUD/TRACs.
Questioned Costs: $0
Recommendation: We recommend that management ensure the required household members sign the HUD-50059 prior to submitting to HUD.
Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding and will ensure that all required signatures are obtained on all Form HUD-50059's prior to submitting to HUD going forward.
Finding 2024-002: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 223(f)/207)
Statement of Condition: The Organization did not submit its annual financial report, certified by a Certified Public Accountant, to HUD within 90 days following of the end of the fiscal year December 31, 2023.
Criteria: HUD requirements, under the Uniform Financial Reporting Standards for HUD Housing Programs; Final Rule, and the Regulatory Agreement require that the Project's annual financial statements report be submitted to HUD within 90 days following the end of each fiscal year.
Effect: Noncompliance with HUD regulations and the possibility that the Project could be subject to criminal and civil monetary penalties.
Cause: The completion of the audit for the fiscal year ended December 31, 2023 was delayed due to the absence of required signatures. Context: A test was performed to review the most recent fiscal year audit submission to HUD. The annual financial statement report for the fiscal year December 31, 2023 was found to have not been submitted to HUD within 90 days following the end of the fiscal year December 31, 2023.
Questioned Costs: $0
Recommendation: We recommend that the board of directors and management ensure the annual financial report, certified by a Certified Public Accountant, is submitted to HUD each year going forward within 90 days following the fiscal year end.
Views of Responsible Officials and Corrective Action Plan: Management acknowledges the annual financial report, certified by a Certified Public Accountant, for the year ended December 31, 2023 was not submitted to HUD by the required due date. Management will provide additional oversight to ensure the annual financial reports are submitted each fiscal year going forward within required due dates. The annual financial report for the fiscal year ended December 31, 2023 was submitted to HUD on December 6, 2024.
Finding 2024-003: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 223(f)/207)
Statement of Condition: The Organization did not submit the data collection forms and required reporting package to the Federal Audit Clearinghouse (FAC) by the required due date for the single audit for the year ending December 31, 2023.
Criteria: The Uniform Guidance, 2 CFR Part 200 Section 200.512(d), Report Submission, requires any non-federal entity that expends Federal awards which must be audited under Subpart F of 2 CFR to electronically submit to the FAC the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512. Additionally, 2 CFR Section 200.512(a) requires the reporting package and data collection form to be submitted to the FAC the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period.
Effect: Noncompliance with Uniform Guidance regulations.
Cause: The completion of the audit for the fiscal year ended December 31, 2023 was delayed due to the absence of signatures.
Context: A test was performed to review the two most recent fiscal year audits performed under the Uniform Guidance and the required data collection forms were submitted to the FAC to determine if the Corporation qualified as a low-risk auditee. A single audit was performed under the Uniform Guidance for the year ending December 31, 2023, however, the data collection form was not submitted to the FAC within the required due dates. Questioned Costs: $0
Recommendation: We recommend the board of directors and management ensure that the audit and data collection forms are completed timely and the data collection form and required reporting package are submitted electronically to the FAC each fiscal year going forward by the required due date.
Views of Responsible Officials and Corrective Action Plan: Management acknowledges the data collection form for the year ended December 31, 2023 was not submitted to the FAC within the required due date. Management will provide additional oversight to ensure the data collection forms are submitted electronically to the FAC each fiscal year going forward within the required due dates. The data collection form for the year ending December 31, 2023 was submitted to the FAC on January 2, 2025.
Finding 2024-001: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 223(f)/207)
Statement of Condition: During the year ending December 31, 2024, the Organization did not obtain the required signatures of tenants on the HUD-50059 at recertification.
Criteria: HUD Handbook 4530.3 REV-1 CHG-3, Chapter 7 section 3 states that signature of the head, co-head, spouse and all other adult members of the household on the HUD-50059 are required prior to submitting to the Contract Administrator or HUD.
Effect: Noncompliance with HUD regulations and potential errors in rental assistance.
Cause: Management oversight.
Context: Of the seven tenant files tested for eligibility compliance, two of the files did not have the signature of the tenant on the HUD-50059 prior to submitting to HUD/TRACs.
Questioned Costs: $0
Recommendation: We recommend that management ensure the required household members sign the HUD-50059 prior to submitting to HUD.
Views of Responsible Officials and Corrective Action Plan: Management agrees with the finding and will ensure that all required signatures are obtained on all Form HUD-50059's prior to submitting to HUD going forward.
Finding 2024-002: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 223(f)/207)
Statement of Condition: The Organization did not submit its annual financial report, certified by a Certified Public Accountant, to HUD within 90 days following of the end of the fiscal year December 31, 2023.
Criteria: HUD requirements, under the Uniform Financial Reporting Standards for HUD Housing Programs; Final Rule, and the Regulatory Agreement require that the Project's annual financial statements report be submitted to HUD within 90 days following the end of each fiscal year.
Effect: Noncompliance with HUD regulations and the possibility that the Project could be subject to criminal and civil monetary penalties.
Cause: The completion of the audit for the fiscal year ended December 31, 2023 was delayed due to the absence of required signatures. Context: A test was performed to review the most recent fiscal year audit submission to HUD. The annual financial statement report for the fiscal year December 31, 2023 was found to have not been submitted to HUD within 90 days following the end of the fiscal year December 31, 2023.
Questioned Costs: $0
Recommendation: We recommend that the board of directors and management ensure the annual financial report, certified by a Certified Public Accountant, is submitted to HUD each year going forward within 90 days following the fiscal year end.
Views of Responsible Officials and Corrective Action Plan: Management acknowledges the annual financial report, certified by a Certified Public Accountant, for the year ended December 31, 2023 was not submitted to HUD by the required due date. Management will provide additional oversight to ensure the annual financial reports are submitted each fiscal year going forward within required due dates. The annual financial report for the fiscal year ended December 31, 2023 was submitted to HUD on December 6, 2024.
Finding 2024-003: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 223(f)/207)
Statement of Condition: The Organization did not submit the data collection forms and required reporting package to the Federal Audit Clearinghouse (FAC) by the required due date for the single audit for the year ending December 31, 2023.
Criteria: The Uniform Guidance, 2 CFR Part 200 Section 200.512(d), Report Submission, requires any non-federal entity that expends Federal awards which must be audited under Subpart F of 2 CFR to electronically submit to the FAC the data collection form and the reporting package described in 2 CFR Part 200 Section 200.512. Additionally, 2 CFR Section 200.512(a) requires the reporting package and data collection form to be submitted to the FAC the earlier of 30 calendar days after the reports are received from the auditors or nine months after the end of the audit period.
Effect: Noncompliance with Uniform Guidance regulations.
Cause: The completion of the audit for the fiscal year ended December 31, 2023 was delayed due to the absence of signatures.
Context: A test was performed to review the two most recent fiscal year audits performed under the Uniform Guidance and the required data collection forms were submitted to the FAC to determine if the Corporation qualified as a low-risk auditee. A single audit was performed under the Uniform Guidance for the year ending December 31, 2023, however, the data collection form was not submitted to the FAC within the required due dates. Questioned Costs: $0
Recommendation: We recommend the board of directors and management ensure that the audit and data collection forms are completed timely and the data collection form and required reporting package are submitted electronically to the FAC each fiscal year going forward by the required due date.
Views of Responsible Officials and Corrective Action Plan: Management acknowledges the data collection form for the year ended December 31, 2023 was not submitted to the FAC within the required due date. Management will provide additional oversight to ensure the data collection forms are submitted electronically to the FAC each fiscal year going forward within the required due dates. The data collection form for the year ending December 31, 2023 was submitted to the FAC on January 2, 2025.