Finding 1161536 (2024-004)

Material Weakness Repeat Finding
Requirement
C
Questioned Costs
-
Year
2024
Accepted
2025-10-29

AI Summary

  • Answer: The entity failed to complete the fiscal year-end closing process on time.
  • Trend: This delay led to late financial statements and missed reporting deadlines to HUD and the Federal Audit Clearinghouse.
  • List: Follow up on improving the year-end closing process to ensure timely submissions in the future.

Finding Text

During the audit, we observed that the entity did not complete the fiscal year-end closing process within a reasonable timeframe after year-end. This delay resulted in late preparation of financial statements and supporting documentation, and contributed to the untimely submission of required reports to HUD. In addition, the annual required filing of the data collection form and reporting package to the Federal Audit Clearinghouse was submitted past the due date.

Corrective Action Plan

The delay in closing the prior fiscal year was due to the transition in management company and the difficulty in obtaining prior year information, account statements and other key documentation in a timely manner. The current fiscal year has been completed through June 2025. The year-end closing plan in place with our current audit team and anticipate that all required submissions will be timely.

Categories

Reporting HUD Housing Programs

Other Findings in this Audit

  • 1161531 2024-001
    Material Weakness Repeat
  • 1161532 2024-002
    Material Weakness Repeat
  • 1161533 2024-004
    Material Weakness Repeat
  • 1161534 2024-001
    Material Weakness Repeat
  • 1161535 2024-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $4.57M
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $848,836