Finding 1225540 (2025-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-08-03

AI Summary

  • Issue: The audit for Liberty Georgian Arms HDFC, Inc. was submitted late, violating HUD regulations.
  • Requirements Impacted: Audits must be submitted to REAC within 90 days of year-end.
  • Follow-Up: Management should establish procedures to ensure timely submission of audit materials to prevent future delays.

Finding Text

Finding No. 2025-002: Current Year audit submission was late. a. The Liberty Georgian Arms HDFC, Inc. December 31, 2025 audit was not submitted to the Real Estate Assessment Center (REAC) within 90-days. b. Criteria: The HUD regulatory agreement requires the audit to be submitted to the Real Estate Assessment center within 90-days of yearend. c. Effect of condition: The effect is that the project would not be in compliance with HUD regulations. d. Cause of condition: The audit material was submitted late to the auditor due to an unexpected software implementation issue. e. Recommendation: We recommend that management implement procedures to ensure that audit material is submitted to the auditor in a timely manner in the future. f. Views of responsible officials and planned corrective actions: Liberty Georgian Arms HDFC, Inc. agrees with the finding and the auditor’s recommendations have been adopted.

Corrective Action Plan

Finding #2025-002 Current Year Audit Submission to REAC was late: Recommendation: We recommend that management implement procedures to ensure that audit material is provided to the auditor in a timely manner to produce the audit for the REAC submission within 90-days. Action taken: Georgian Arms Apartments agrees with the auditor’s recommendations and will implement procedures to ensure timely filing in the future. For questions regarding this corrective action plan, please contact Dawn Olmstead, VP – Director of Asset Management, at (315) 337-1401.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1225539 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $2.42M
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $264,022