Finding Text
Condition: The Corporation did not file its required 2024 and 2025 audit reporting packages by the required due dates. Criteria or specific requirement: The Corporation is required to file its annual audit reporting package to the U.S. Department of Housing and Urban Development Real Estate Assessment Center. Cause: The 2024 audit reporting package was submitted late (October 7, 2025). The 2024 audit was not completed by the due date of September 30, 2025. In 2025, management engaged a new audit firm to audit the Corporation’s 2025 financial statements that was dependent on information from the predecessor audit firm. In addition, management was heavily involved in the sale of the Corporation that was effective March 20, 2026. As a result, management was delayed in the preparation of the 2025 audit that resulted in the late filing. Effect: The submission of the 2024 and 2025 audit reporting packages were late. Recommendation: We recommend that management evaluate the existing procedures to ensure a timely financial statement close process. Questioned costs: None Views of responsible officials and planned corrective actions: Management agrees with the finding. As stated, the transition to a new audit firm and the sale of the Corporation impacted management’s ability to file its 2025 financial statements timely. Management evaluated the circumstances noted above and plans to have the 2026 books and records closed and ready for the audit firm to complete the 2026 by the HUD due date.