Finding 1228521 (2021-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2021
Accepted
2026-08-31
Audit: 410155
Organization: THE NEWHOUSE INC (HI)
Auditor: KKDLY LLC

AI Summary

  • Issue: The Organization missed the deadline for submitting financial data to PIH-REAC for the year ending September 30, 2021.
  • Requirements Impacted: This late submission violates the Uniform Financial Reporting Standards, which require filing within nine months of the fiscal year end.
  • Recommended Follow-Up: Enhance financial reporting processes to ensure timely submissions in the future, aiming to return to compliance as soon as possible.

Finding Text

Criteria: In accordance with the Uniform Financial Reporting Standards for HUD Housing Program, the Organization must file the financial data templates prepared with audited financial statement data to Real Estate Assessment Center no later than nine months after the Organization's fiscal year end. Condition: The Organization did not submit its Financial Data Schedule and audited financial statements for the year ended September 30, 2021 to Office of Public and Indian Housing Real Estate Assessment Center (PIH-REAC) by the required due date. Cause: The Organization did not have adequate procedures to ensure the timely filing of the financial data to PIH-REAC. Effect: Late filing has resulted in noncompliance with timely submission of financial information to PIH-REAC. Recommendation: The Organization should improve its financial reporting process so that it can submit its single audit reporting package to the PIH-REAC no later than nine months after the Organization's fiscal year end. Views of Responsible Officials and Planned Corrective Action: We were not able to submit the financials on time because we lost our previous auditors in 2021. It took some time to find a new company that handles HUD audit. Going forward, we will strive to get back to our normal schedule at the soonest time and get back in compliance.

Corrective Action Plan

We were not able to submit the financials on time because we lost our previous auditors in 2021. It took some time to find a new company that handles HUD related audits. Going forward, we will work on getting back to our normal audit schedule to get back in compliance at the soonest possible time.

Categories

HUD Housing Programs Reporting

Other Findings in this Audit

  • 1228520 2021-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.181 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES $1.32M
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $47,978