Finding 1239108 (2025-003)

Financial Reporting - Untimely Submission of Electronic Data into the HUD Real Estate Assessment Center (REAC): Criteria: HUD requires that any company required to have an audit under its requirements is also required to submit its financial information electronic submission to REAC within nine months of its year end. Condition: The Company’s 2024 electronic submission to REAC was not filed within nine months from the end of Its fiscal year. Cause: Delays in completion of audit procedures resulted in the audit report not being issued on a timely basis. Therefore, the Company’s 2024 REAC electronic submission was not completed within the nine months of the end of its fiscal year end. Questioned Costs: None noted. Context: When performing our audit, we noted that the electronic submission of financial information to REAC was not filed on a timely basis. Effect: The Company was not in compliance with the requirement to complete the filing of the Company’s 2024 electronic submission to REAC within nine months of its year end. Recommendation: We recommend that the Company’s electronic submission to REAC be filed within nine months of its year end as required.