Finding 1176388 (2023-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2026-03-04

AI Summary

  • Core Issue: Financial information was not submitted to HUD within the required nine-month period after the fiscal year end.
  • Impacted Requirements: Compliance with CFDA 14.155 and CFDA 14.195 reporting deadlines.
  • Recommended Follow-Up: Ensure the electronic submission to REAC is filed as soon as possible to rectify the compliance issue.

Finding Text

Mortgage Insurance for the Purchaser or Refinancing of Existing Multifamily Housing Projects, CFDA 14.155 and Section 8 Housing Assistance Program Payments, CFDA 14.195 Criteria: Reporting: Within nine months following the end of each fiscal year the project owners must submit to HUD financial information derived from the audited financial statements electronically to HUD via the Real Estate Assessment Center (REAC). Condition: The financial information was not submitted to HUD within the nine months following the end of fiscal year. Cause: Due to delays of audit documentation from management, the audit was not able to be completed within the required time frame Effect: The Project is not in compliance with the requirement to complete the filing required within the nine months after fiscal year end. Repeat Finding: 2022-002 Recommendation: We recommend the electronic submission to REAC be filed as soon as possible. Views of Responsible Officials and Planned Corrective Actions: The Organization agrees with the finding and will file the report.

Corrective Action Plan

Planned Corrective Action: The Board of Directors acknowledges the reporting deadline was not met. We have implemented significant changes in internal controls over compliance to ensure the audit is completed and submitted by the required deadlines.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1176387 2023-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $4.76M
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $781,263