Finding Text
Criteria: In accordance with Uniform Guidance, the data collection form and reporting package must be submitted to the Federal Audit Clearinghouse ("FAC") within the earlier of 30 calendar days afer receipt of the auditor's report(s), or nine months after the end of the audit period. If the due date falls on a Saturday, Sunday, or federal holiday, the reporting package is due the next business day. Also, in accordance with the Consolidated Audit Guide for Audits of HUD Programs, the annual audited financial statements must be electronically submitted to the Real Estate Assessment Center ("REAC") within 90 days after fiscal year-end. Condition: Drexel Square Apartments failed to submit its data collection form and reporting package for the year ended Decemver 31, 2022 to the FAC within nine months after its fiscal year-end and to electronically submit its annual audited financial statements for the years ended December 31, 2023 and 2022 to the REAC within 90 days after is fiscal year-end. Effect: Drexel Square Apartments could lost its federal funding. Cause: Management of Drexel Square Apartments encountered the following difficulties resulting in the untimely submission of the data collection form and reporting package to the FAC and the annual financial statements to the REAC. With respect to the audit, management's 2022 auditor, Morrison and Morrison, Ltd. ("Morrision and Morrison"), was expected to complete the 2023 audit; however, Morrison and Morrison was acquired be EisnerAmper LLP, which delayed the commencement of the 2023 audit. Management could not find another audit firm to commence the 2023 audit in early 2024. Consequently, the 2023 audit did not commence until May 2024. With respect to the FAC filing for the 2022 audit, Morrison and Morrison staff was reassigned, which delayed the filing. The FAC system also required new registration from the auditor and auditee, which further delayed the filing.