Finding 1235737 (2024-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2026-09-18

AI Summary

  • Core Issue: The Corporation failed to submit a complete audited annual financial report to HUD within the required nine-month period after the fiscal year ended December 31, 2024.
  • Impacted Requirements: This non-compliance violates the terms of the Regulatory Agreement, which mandates timely submission of audited reports.
  • Recommended Follow-Up: Ensure future annual financial statements are submitted on time to meet HUD's deadlines and avoid similar issues.

Finding Text

Assistance Listing (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, CFDA No. 14.155 (Project identification number 047-11056, 2007) Auditor non-compliance code: Z - Other Finding resolution status: Resolved Universe population size: The universe population size is not applicable to the finding Sample size information: The sample size information is not applicable to the finding Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of condition #2024-002: The Corporation submitted the owner certified financial report within ninety (90) days following the end of the fiscal year ending December 31, 2024, however did not furnish HUD with a complete audited annual financial report within nine (9) months following the end of the fiscal year ending December 31, 2024. Criteria: Pursuant to the Regulatory Agreement, within ninety (90) days, or such period established in writing by HUD, following the end of each fiscal year, the Corporation shall engage an independent, licensed Certified Public Accountant to audit the Corporation's annual financial report and to produce and furnish HUD an audit report in accordance with the requirements established by HUD. Effect: The Corporation is not in compliance with the Regulatory Agreement. Cause: Due to administrative delays, the Corporation did not submit the audited financial statements to HUD within the nine (9) month requirement. Recommendation: The annual financial statements should be issued in a timely manner pursuant to the time frame set forth by HUD. Management's response: Management concurs with the finding and recommendation. The audited financial statements have been submitted to HUD.

Corrective Action Plan

Finding 2024-002: The Corporation submitted the owner certified financial report withing ninety (90) days following the end of the fiscal year ending December 31, 2024, however did not furnish HUD with a complete audited annual financial report within nine (9) months following the end of the fiscal year ending December 31, 2024. Comments on the Finding and Each Recommendation: The annual financial statements should be issued in a timely manner pursuant to the time frame set forth by HUD. Action(s) Taken or Planned on the Finding: Management concurs with the finding and recommendation. The audited financial statements have been submitted to HUD.

Categories

HUD Housing Programs Procurement, Suspension & Debarment Subrecipient Monitoring

Other Findings in this Audit

  • 1235736 2024-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $1.62M
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $426,495