Finding 1146960 (2024-002)

Finding 2024-002 - U.S. Department of Housing and Urban Development, Supportive Housing for the Persons with Disabilities (Section 811), CFDA #14.181 Statement of Condition: The Corporation did not submit its annual financial report, certified by a Certified Public Accountant, to HUD within 90 days following of the end of the fiscal year June 30, 2023. Criteria: HUD requirements, under the Uniform Financial Reporting Standards for HUD Housing Programs; Final Rule, and the Regulatory Agreement require that the Project's annual financial statements report be submitted to HUD 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 penalties. Cause: Timing delays in receipt of information required to complete the audit for the year ending June 30, 2023. Context: A test was performed to review the most recent fiscal year audit submission to HUD. The annual financial statement report for the fiscal year June 30, 2023 was found to have not been submitted to HUD within 90 days following the end of the fiscal year June 30, 2023. Questioned Costs: N/A Recommendation: We recommend management submit the annual financial report, certified by a Certified Public Accountant, each year going forward within 90 days following the fiscal year end. Views of Responsible Officials and Corrective Action Plan: Management acknowledges the annual financial report, certified by a Certified Public Accountant, for the year ended June 30, 2023 was not submitted to HUD within the required due date. Management will provide additional oversight to ensure the annual financial reports are submitted each fiscal year going forward within required due dates. The annual financial report for the fiscal year ended June 30, 2023 has been submitted to HUD.