Finding Text
Finding #2023-003: Section 202 Supportive Housing for the Disabled, Assistance Listing 14.157
Type of Finding: Material Weakness
Condition: On February 15, 2011, the Organization’s tax-exempt status was revoked due to failure to file federal tax return Form 990 for three consecutive years.
Criteria: The nonprofit corporation financed the Project with the U.S. Department of Housing and Urban Development (HUD) pursuant to a mortgage note regulated by HUD under Section 202 of the National Housing Act, as amended.
Effect: The Corporation is in violation of the compliance requirement of its major federal program.
Questioned Cost: $816,048
Cause: Federal tax returns Form 990 was not filed.
Recommendation: We recommend the Corporation file all necessary forms to reinstate the Corporations’ tax-exempt status.
Management’s View: Management is in agreement with the finding. The corrective action plan is included in the audit report.
Auditor’s Comment:
The Organization intends to apply for reinstatement of tax-exempt status.