Finding 1086205 (2023-001)

Finding 2023-001 - 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, 2023 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 mortgage default. Cause: Change in management. Context: The engagement letter for the audit was executed after the required due date for 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, 2023 is past the required due date. The new management company will ensure the annual financial reports to HUD are submitted by the required due dates.