Finding Text
Finding 2024-003
Type of Finding: Significant deficiency in internal control over compliance and immaterial noncompliance.
Federal program: HUD Supportive Housing for Persons with Disabilities (Assistance Listing #14.181)
Compliance Requirement: Reporting
Criteria: River Kourt Apartments’ regulatory agreement with HUD and the HUD Uniform Financial Reporting Standards (24 CFR §5.801) require audited financial statements to be submitted to HUD within 90 days of the fiscal year end. HUD may authorize an extension to the 90-day due date.
Condition: The annual audit for the fiscal year ended June 30, 2023 was not submitted by the due date as required by HUD.
Cause: The audit was not completed within the applicable time frame, so it was not available to be submitted to HUD by the due date.
Effect: The effect is immaterial non-compliance with the terms of the HUD program listed above.
Questioned Costs: None.
Repeat Finding: Yes, see Finding 2023-002.
Context: Not applicable.
Recommendation: We recommend management design and implement internal controls over compliance to ensure the audit is completed timely and submitted to HUD as required.
Views of Responsible Officials: Management agrees with the finding. See Corrective Action Plan.