Finding 1095438 (2024-001)

Criteria or specific requirement: Financial Report Requirements requires quarterly financial reports to be prepared and due within 60 days after the end of the reporting quarter. Condition: Quarterly financial statements were not submitted to loan servicer within the 60 day period requirement for at least one quarter. The Project was not able to provide support on the timing of each quarterly financial statement submitted. Questioned costs: None Context: During our testing, it was noted that the Project did not submit reports for the quarter ended August 31, 2023 until November 17, 2023. Support for the timing of the November 30, 2023 and February 29, 2024 quarterly financials was not provided. Cause: Turnover in controller position lead to oversight of the requirement and maintenance of support. Effect: The quarterly report was not submitted in time in accordance with the Regulatory Agreement. Repeat finding: Yes Recommendation: We recommend the Project review controls to include processes to ensure timely submission. Views of responsible officials: There is no disagreement with the audit finding.