Audit 413124

Finding 2025-001 - Section 232 - Mortgage Insurance - Nursing Homes, Intermediate Care Facilities, and Board and Care Homes and Assisted Living Facilities, Assistance Listing # 14.129 Condition: The Organization did not submit its REAC Financial Data Schedule (FDS) for the year ended December 31, 2024, by the required due date. The REAC submission was filed on October 1, 2025, which was one day after the required deadline. Criteria: Per HUD’s Uniform Financial Reporting Standards and the OMB Uniform Guidance, recipients of HUD assistance are required to submit their annual audited financial statements and related REAC FDS electronically through the REAC system no later than nine months after the end of their fiscal year. Timely submission is necessary for HUD’s oversight and monitoring of program compliance. Cause: Management did not have adequate monitoring controls in place to ensure timely submission of the REAC FDS to HUD. The delay was attributed to administrative delays in processing the filing. Effect: Failure to submit the REAC FDS by the required deadline places the Organization at risk of noncompliance with HUD requirements or potential impacts on future funding and participation in HUD programs. Recommendation: We recommend that the Organization strengthen its internal controls to ensure timely submission of required reports, including the REAC FDS. Views of Responsible Officials and Planned Corrective Action: Management concurs with this finding. The Organization has implemented procedures to track HUD filing deadlines and to monitor and submit the REAC FDS timely going forward. Questioned Costs – Major Federal Award Programs Audit None