Finding Text
Condition HUD’s Real Estate Assessment Center (REAC) report was not filed on time. Criteria The REAC report should be filed within 90 days after the Organization’s calendar year-end. Cause The Organization experienced staffing turnover within the accounting function, resulting in additional time needed to comply with the timely reporting requirement. Effect The Organization was not in compliance with HUD’s reporting requirements. Questioned Costs $0 Repeat Finding Yes Recommendation We recommend management ensure that the REAC report is filed promptly following the completion of the audit. Views of Responsible Officials and Planned Corrective Actions Management concurs with the finding and agrees with the recommendations. Effective January 1, 2026, management will implement measures such as recurring automated email reminders and scheduled check-in meetings to ensure the REAC report is filed on time going forward.