Finding Text
UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (Continued) S3800-010: Finding Reference Number 2025-003 S3800-011: Title and Assistance Listing Number of Federal Program: 14.856 Lower Income Housing Assistance Program (Section 8 Moderate Rehabilitation) and 14.134 Mortgage Insurance – Rental Housing (Section 207(a)/223(f) S3800-020: Criteria: Under the United States Department of Housing and Urban Development (HUD) regulatory agreement, final reports due to HUD must be electronically submitted to the United States Department of Housing and Urban Development Real Estate Assessment Center (US HUD REAC) within the earlier of nine months or thirty days after receipt of the auditor’s report, unless a longer period is agreed to in advance by the cognizant or oversight agency for the audit. S3800-030: Statement of Condition: The June 30, 2024 year-end audit reporting package required to be submitted to the federal government through United States Department of Housing and Urban Development Real Estate Assessment Center (US HUD REAC) was not submitted before the submission deadline. The Federal Audit Clearinghouse Data Collection Form and annual reporting package were submitted to the Federal Audit Clearing House by the due date. S3800-032: Cause: The primary contributing cause to this late submission was the fact that there were discovered errors in the template that included the address on file. The directions on the HUD REAC website states when creating the report template if any information is not correct to stop and contact the HUD Project Manager, which management did to correct the problem. However, resolution to the problem did not occur until after the due date of the submission. S3800-033: Effect or Potential Effect: The property was not in compliance with the HUD regulatory agreement regarding submission of the annual reporting package; however, management was following the directive of HUD to correct the information within REMS by contacting the HUD Project Manager before proceeding. Management followed the directions of HUD to the best of their ability to both file on time and the directive not to proceed if any information was inaccurate or incomplete on the financial statement template. S3800-035: Auditor Noncompliance Code: Z - Other S3800-040: Questioned Costs: $0 S3800-037: FHA Contract Number: 127-11114 S3800-038: Questioned Costs: $0 S3800-045: Reporting Views of Responsible Officials: The Corporation took steps to ensure that audits are completed in a timely manner and that the annual reporting package was submitted before the deadline to US HUD REAC, but the reporting was late due to circumstances beyond the Corporation’s control. Management does not believe this noncompliance will reoccur. S3800-050 Context: See Statement of Condition. S3800-080: Auditor Recommendation: It is our opinion that management acted in good faith and that the submission was late due to circumstances beyond their control that could not be corrected before the submission was due. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations: Management acknowledges that the annual submission due to REAC was late, but acted in good faith to correct errors in the template before proceeding, and contact HUD as instructed based upon on the HUD REAC website instructions. Management does not believe this noncompliance will reoccur. S3800-130 Response Indicator: Agree S3800-150: Response: See Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations.