Accounting Policies: The schedule of expenditures of federal awards is prepared on the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The auditee did not use the de minimis cost rate.
Auditor non-compliance code: Z - Other Universe population size: The universe is not applicable to the finding. Sample size population: The sample size is not applicable to the finding. Noncompliance information: See statement of condition #2022-001 for noncompliance information. Statement of condition #2022-001: The Corporation did not furnish HUD with a complete annual financial report by March 31, 2023, as required by HUD. Criteria: Pursuant to the HAP Contract, within ninety (90) days, or such period established in writing by HUD, following the end of each fiscal year, the Corporation shall furnish HUD with a complete annual financial report based upon an examination of the books and records of the Corporation prepared in accordance with GAAP, audited in accordance with Generally Accepted Auditing Standards and Government Auditing Standards and any additional requirements of HUD unless the report is waived in writing by HUD. Effect: The Corporation was not in compliance with the HAP Contract. Cause: Due to administrative delays related to the change in Board of Directors interest and refinance of the mortgage, the Corporation did not submit the audited financial statements to HUD by March 31, 2023. Recommendation: The annual financial statements should be issued in a timely manner pursuant to the time frame set forth by HUD. Reporting views of the responsible officials: Management concurs with the finding and agrees with the recommendation. The audit report as of and for the year ended December 31, 2022 has been submitted to HUD. No further action is required.
Auditor non-compliance code: Z - Other Universe population size: The universe is not applicable to the finding. Sample size population: The sample size is not applicable to the finding. Noncompliance information: See statement of condition #2022-001 for noncompliance information. Statement of condition #2022-001: The Corporation did not furnish HUD with a complete annual financial report by March 31, 2023, as required by HUD. Criteria: Pursuant to the HAP Contract, within ninety (90) days, or such period established in writing by HUD, following the end of each fiscal year, the Corporation shall furnish HUD with a complete annual financial report based upon an examination of the books and records of the Corporation prepared in accordance with GAAP, audited in accordance with Generally Accepted Auditing Standards and Government Auditing Standards and any additional requirements of HUD unless the report is waived in writing by HUD. Effect: The Corporation was not in compliance with the HAP Contract. Cause: Due to administrative delays related to the change in Board of Directors interest and refinance of the mortgage, the Corporation did not submit the audited financial statements to HUD by March 31, 2023. Recommendation: The annual financial statements should be issued in a timely manner pursuant to the time frame set forth by HUD. Reporting views of the responsible officials: Management concurs with the finding and agrees with the recommendation. The audit report as of and for the year ended December 31, 2022 has been submitted to HUD. No further action is required.