Finding Text
Finding number: 2025-001 Finding type: Federal award finding Federal Assistance Listing No: 14.139 Program name: Mortgage Insurance Rental Housing in Urban Renewal Areas Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: n/a Grant number: n/a Federal award year: 2025 Control deficiency type: Significant deficiency over compliance Instance of noncompliance: Yes Compliance requirement: Reporting Questioned costs: n/a Repeat finding: Yes Criteria: In accordance with the requirements of CFR §200.512, the audit shall be completed and the data collection form and reporting package shall be submitted to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor’s report, or nine months after the end of the audit period. Condition: M. Carter Plaza did not electronically submit its June 30, 2024 Single Audit reporting package to the Federal Audit Clearinghouse within the required time period. Cause: M. Carter Plaza’s 2024 accounting records were not closed in a timely matter. Effect: M. Carter Plaza did not comply with CFR §200.512. The late submission results in non-compliance for all federal programs. Audit Recommendation: We recommend that management implement procedures to ensure that all required reporting is submitted in a timely manner and in accordance with CFR §200.512 deadlines. Management’s Response: The closing of books and preparation for audit procedures is being addressed via improvements in internal controls related to property accounting and month end closing procedures as well as the hiring of more experienced staff during fiscal year 2025-2026. The organization anticipates that these improvements will allow for the audit to be completed within the required timeframe in the upcoming cycle.