Finding 1228107 (2024-003)

Material Weakness – Reporting The Uniform Guidance requires that all entities that expend in excess of $750,000 to file audited financial statements and Data Collection Form within 9 months of year-end. (2 CFR Section 200.512). Entities are required to submit timely GAAP-based audited financial information to HUD’s Financial Assessment Subsystem within 90 days of year end. (24 CFR Section 5.801(c)(2) and HUD Handbook 4065.1 REV-1, paragraph 2-1 (D)(1)(b)). Condition The Project’s December 31, 2024 audited financial statements were not filed with the Federal Audit Clearinghouse within nine months of year-end. The audited financial statements were not reported to HUD’s Financial Assessment Subsystem within 90 days of year end. Cause Turnover in staffing and lack of oversight led to information not being ready for audit in a timely manner. Questioned Costs Not Applicable. Context We reviewed all report submissions for compliance and internal controls. Effect The Project could have had federal funding delayed or reduced. Repeat Finding This is not a repeat finding. Recommendation We recommend the Project review its internal control policies and procedures to ensure timely reporting. Response The Project agrees with the finding and will implement controls to ensure timely reporting for future submissions.