Finding Text
Compliance Requirement: Timely reporting of Annual Financial Statements in PIH-REAC Type of Finding: Significant deficiency in Internal Control and Instance of Noncompliance Criteria: The Uniform Guidance Compliance Supplement requires timely filing of annual financial statements in PIH-REAC system no later than 90 days after year end. Condition: Monthly review of transactions posted to Yardi and the general ledger system was not implemented properly to detect discrepancies or errors in a timely manner, which delayed timely filing of required submission. Context: The condition was noted during our testing over the entity’s accounting records and financial statement reconciliations that required additional time to determine that the books and records were not materially misstated which delayed timely filing of required submission in PIH-REAC system. Effect: Certain financial statement and reporting requirement deadlines were missed creating the potential for lost federal awards. Cause: Lack of knowledge and insufficient skills surrounding financial statement review processes. Recommendation: We recommend staff training at the property level to perform monthly review of accounting records and reconciliations between Yardi and general ledger system. This should improve internal controls over financial reporting sufficient to allow for timely submission of required filings and reduce risk of losing Federal Awards. Views of Responsible Officials and Planned Corrective Actions: Management agrees. The Accounting Manager and Executive Director for the year ended June 30, 2025 were terminated in October 2025, and the former Executive Director has returned to assist in implementing necessary controls and processes and train property level staff.