Finding 1086088 (2024-001)

Finding 2024-001 - U.S. Department of Housing and Urban Development, Supportive Housing for the Elderly (Section 202), Assistance Listing #14.157 Statement of Condition: The Corporation did not submit the annual financial report to HUD for the year ended June 30, 2024 by the required deadline. Criteria: The Regulatory Agreement requires the Corporation to submit to HUD the annual financial report within 90 days following the end of each fiscal year. Effect: Noncompliance with HUD regulations and the possibility that the Project could be subject to criminal and civil monetary penalities. Cause: The Corporation had a change in management, resulting in timing delays in recipt of information required to complete the audit for the year ending June 30, 2023 which also delayed the audit for the year ending June 30, 2024. Context: The engagement letter for the audit was executed after the HUD annual financial report due date. Questioned Costs: N/A Recommendation: We recommend the board of directors and management ensure that the annual financial reports to HUD are submitted by the required due dates. Views of Responsible Officials and Corrective Action Plan: Management acknowledges the annual financial report to HUD for the year ended June 30, 2024 is past the required due date. The management company will ensure the annual financial reports to HUD are submitted by the required due dates once the audits are back on track with scheduled due dates.