Finding Text
Finding 2019-004 – Reporting – Material Weakness
Name of Federal Agency: Department of Housing and Urban Development
Federal Program Name and Assistance Listing Number: Supportive Housing for Persons
with Disabilities (Section 811), Assistance Listing 14.181
Federal Award Identification Number and Year: N/A and 1997
Name of Pass-through Entity: N/A
Criteria
HUD under the Uniform Financial Reporting Standards Rule implementing requirements of 24 CFR, Part
5, Subpart H, requires not-for-profit multifamily program participants to submit financial
statement data electronically to Real Estate Assessment Center ("REAC") within 90 days after their
fiscal year-end. If the owner is not prepared to submit the audited financial information, then an
owner-certified report must be submitted within 90 days of fiscal year-end.
Condition
The audited annual financial statement data for the year ended September 30, 2019 was not timely
submitted to HUD via the REAC system.
Cause
Management did not have internal controls in place to allow for a timely audit which resulted in
delays in timely submitting the report to REAC.
Effect or Potential Effect
The audited annual financial statement data was not filed timely to REAC.
Questioned Costs
None.
Context
See the context of the finding detailed in the condition section above.
Identification as a Repeat Finding
This finding is not a repeat finding.
Recommendation
Financial statements should be timely filed.
Auditor Noncompliance Code: S - Internal control deficiency
Finding Resolution Status: Unresolved.
Views of Responsible Officials
HES agrees with the finding and the auditor's recommendations have been adopted.