Finding Text
Criteria: Financial statement data is required to be submitted electronically to the Real Estate Assessment Center (REAC) within 90 days after their fiscal year-end. If the Project is not prepared to submit the audited financial information, then an owner-certified report must be submitted within 90 days of fiscal year-end. Condition: Due to delays in account reconciliations, the audited annual financial statement data for the year ended June 30, 2024 was not submitted to HUD via the Real Estate Assessment Center REAC system within the required time frame. Effect: The Project is not in compliance with HUD requirements regarding the timely submission of financial information to the REAC. Questioned Costs: $0 Cause: The Project experienced turnover resulting in delays in account reconciliations for audit completion and submission of data to the REAC. Recommendation: The Project should consider reevaluating their established procedures and controls in place to ensure full compliance regarding the reporting requirements required by HUD. Views of Responsible Officials: Management agrees with the findings. There was significant turnover during and subsequent to the audit period resulting in a lack of controls. Controls have been re-evaluated and implemented under new management. Further response is included in the Corrective Action Plan.