Finding 1217897 (2025-003)

Material Weakness Repeat Finding
Requirement
BLN
Questioned Costs
-
Year
2025
Accepted
2026-06-17

AI Summary

  • Issue: The Corporation missed the deadline for submitting the annual financial report to HUD for 2024.
  • Requirements Impacted: The Regulatory Agreement mandates submission within 90 days after the fiscal year ends.
  • Recommended Follow-Up: Management should prioritize timely submission of future reports to avoid penalties and ensure compliance.

Finding Text

Finding 2025-003 - U.S. Department of Housing and Urban Development, Mortgage Insurance Rental and Cooperative Housing for Moderate Income Families and Elderly, Market Interest Rate, CFDA #14.135 Statement of Condition: The Corporation did not submit the annual financial report to HUD for the year ended December 31, 2024 by the required deadline. Criteria: The Regulatory Agreement requires the Corporation to submit to HUD the annual financial report within 90 days following the end of each fiscal year. Effect: Noncompliance with Regulatory Agreement, monetary penalties and default under the note and mortgage. Cause: Limited available cash flow. Context : A test was performed to review the prior year submission of the annual financial report to HUD was submitted to HUD within 90 days following the end of the prior fiscal year. For the year ended December 31, 2024, the annual financial report to HUD was submitted on February 10, 2026, which is after the due date of March 30, 2025. Questioned Costs: N/A Recommendation: We recommend management ensure that the annual financial reports to HUD are submitted by the required due dates. Views of Responsible Officials and Corrective Action Plan: Management acknowledges the annual financial report to HUD for the year ended December 31, 2024 was submitted late due to audit delays related to limited cash flow. Management is taking steps to improve cash flow and will ensure the annual financial report to HUD for the year ended December 31, 2025, is submitted timely.

Corrective Action Plan

Mount Sinai Foundation, Incorporated 703 Blue Street Fayetteville, North Carolina 28301 CORRECTIVE ACTION PLAN May 13, 202 U.S. Department of Housing and Urban Development Five Points Plaza Building 40 Marietta Street Atlanta, Georgia 30303 Mount Sinai Foundation, Incorporated respectfully submits the following Corrective Action Plan for the year ended December 31, 2025. Bernard Robinson & Company, L.L.P. 1501 Highwoods Blvd., Suite 300 Post Office Box 19608 Greensboro, North Carolina 27419-9608 The findings for the year ended December 31, 2025 Schedule of Findings and Questioned Costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS - Financial Statement Audit and Federal Award Program Audits Finding 2025-003 - U.S. Department of Housing and Urban Development, Mortgage Insurance Rental and Cooperative Housing for Moderate Income Families and Elderly, Market Interest Rate (Sections 221d(3) and (4) Multifamily - Market Rate Housing), CFDA #14.135 Recommendation: That management ensure that the annual financial reports to HUD are submitted by the required due dates. Action Taken: We agree with Finding 2025-003 and the recommendation described in the accompanying schedule of findings and questioned costs. Management is taking steps to improve cash flow and will ensure the annual financial report to HUD for the year ended December 31, 2025, is submitted timely. Sincerely yours, Shannon Pow President Remnant Management, Inc.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1217895 2025-001
    Material Weakness Repeat
  • 1217896 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.135 MORTGAGE INSURANCE_RENTAL AND COOPERATIVE HOUSING FOR MODERATE INCOME FAMILIES AND ELDERLY, MARKET INTEREST RATE $6.96M
14.195 SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM $724,404