Audit 410160

Criteria: In accordance with 2 U.S. Code of Federal Regulations (CFR) 200.512, the Organization must submit its single audit reporting package and data collection form to the Federal Audit Clearinghouse (the FAC) within the earlier of 30 days after receipt of the auditors' report, or nine months after the end of the audit period. Condition: The Organization did not submit its single audit reporting package and data collection form (Form SF-SAC) for the year ended September 30, 2022 to the FAC by the required due date. Cause: The Organization did not have adequate procedures to ensure the timely filing of the single audit reporting package and data collection form to the FAC. Effect: Late filing has resulted in noncompliance with timely submission of financial information to grantor agencies. Repeated Finding: See finding 2021-001 included in the Status of Prior Audit Findings. Recommendation: We recommend that the Organization improve its financial reporting process to ensure compliance with the reporting requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, which requires that the single audit reporting package and data collection form be submitted to the FAC within the earlier of 30 days after the receipt of the auditors' report, or nine months after the end of the audit report, unless a longer period of time is agreed to in advance by the cognizant or oversight agency for the audit. Views of Responsible Officials and Planned Corrective Action: The audited financial statements for FY2022 will be finalized before the end of December 2024, and shortly thereafter, the single audit reporting package will be transmitted to FAC.

Criteria: In accordance with the Uniform Financial Reporting Standards for HUD Housing Program, the Organization must file the financial data templates prepared with audited financial statement data to Real Estate Assessment Center no later than nine months after the Organization's fiscal year end. Condition: The Organization did not submit its Financial Data Schedule and audited financial statements for the year ended September 30, 2022 to Office of Public and Indian Housing Real Estate Assessment Center (PIH-REAC) by the required due date. Cause: The Organization did not have adequate procedures to ensure the timely filing of the financial data to PIH-REAC. Effect: Late filing has resulted in noncompliance with timely submission of financial information to PIH-REAC. Repeated Finding: See finding 2021-001 included in the Status of Prior Audit Findings. Recommendation: We recommend that the Organization improve its financial reporting process to ensure that submission of its single audit reporting package to the PIH-REAC is no later than nine months after the Organization's fiscal year end. Views of Responsible Officials and Planned Corrective Action: The audited financial statements for FY2022 will be finalized before the end of December 2024 and shortly thereafter, the audited financial statements will be transmitted to the Office of Public and Indian Housing - Real Estate Assessment Center (PIH-REAC).

Criteria In accordance with the Organization’s regulatory agreement with the U.S. Department of Housing and Urban Development’s (HUD) for its Section 811 Project Rental Assistance Contract (PRAC), the Organization is required to determine whether applicants are eligible to occupy the subsidized property and receive housing assistance. Eligibility is determined by the rules and regulations promulgated by HUD. Based on the eligibility requirements, project owners must maintain eligibility documentation in the tenant’s file. Condition During the audit, we requested 5 tenant files to review, in which 1 of the selected tenant files could not be located, and 3 instances were noted where the tenant files were incomplete, lacking required documentation indicating verification of eligibility: signed Form 50059 – Owner’s Certification of Compliance with HUD’s Tenant Eligibility and Rent Procedures, and timely verification of sex offender background check. Cause The noncompliance was the result of administrative oversight, in which, project management personnel did not consistently follow the Organization’s policies and procedures. Effect Failure to obtain the required eligibility documentation can result in federal assistance to non-qualified individuals. Recommendation We recommend that the Organization comply with established policies and procedures to ensure that the proper eligibility documentation is maintained in the tenant’s file. Views of Responsible Officials and Planned Corrective Action The missing tenant file has been subsequently located and procedures have been put in place to prevent a similar problem in the future regarding missing paperwork. 100% of the project staff will receive annual training. The Project Supervisor will continue to conduct quarterly reviews of the files and work with staff to address any discrepancies. Background checks are always obtained before moving in; however the staff misplaced the original documentation and when management reviews the files and the document is missing, the staff obtains a new print out so the date will show a later date. To avoid similar occurrences in the future, the Supervisor who obtains the documents will save a soft copy of the original documents as a backup.