Finding Text
Finding 2025-005: External Reporting – REAC Submission Public Housing Program, Assistance Listing #14.850 Material Weakness/Noncompliance – Repeat Finding Criteria: According to 24 CFR §5.801of Uniform financial reporting standards established by HUD, requires the Agency to submit financial information through the HUD REAC system no later than 60 days after the end of the fiscal year of the reporting period. Condition: The Agency did not submit the Unaudited Submission to REAC until April 15, 2026, which was required by December 1, 2025. Cause: Management did not get the financial information to the fee accountant in a timely manner in order for the REAC submission to be completed within the required deadlines. Effect or Potential Effect: The Agency is in noncompliance with external reporting requirements of HUD. Recommendation: In the future the Agency needs to get the information needed to submit the electronic submission to REAC and to allow the audit to be completed and submitted within the time requirements. View of Responsible Official: Management agrees with the Finding.