Finding Text
(2023-002) Financial Reporting
Condition - The Company did not submit audited submissions to REAC and the local field office within nine months after the end of the fiscal year.
Criteria - In accordance with HUD’s Uniform Financial Reporting Standards (UFRS) rule and 24 CFR Part 5, Subpart H, companies are required to submit audited submissions to REAC and the local field office, no later than nine months after the end of the company’s fiscal year.
Effect - The Company is not in compliance with financial reporting requirements.
Cause - The Company did not submit an audited submission to REAC and the local field office because the audit was not complete by the due date.
Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample.
Questioned Costs - None identified.
Recommendation - The Company should submit an audited submission to REAC and the local field office as soon as the audit is complete.
Management’s Response - The Company will work to engage its auditors to perform the December 31, 2024 audit in March of 2025 and complete the audited submission within 90 days after the end of the fiscal year. The current year audited submission will be complete and filed upon completion of this audit.