Finding Text
Finding 2025-001 – Late payment on the Flexible Subsidy Note Payable Federal Program: U.S Department of Housing and Urban Development, Operating Assistance for Troubled Multifamily Housing Projects, Federal Assistance Listing Number 14.164. Identification of Repeat Finding and Finding Reference Number: This is not a repeat finding. Criteria or Specific Requirement: Providence Building Sanitary and Educational Association’s (the “Organization”) annual payment on its Flexible Subsidy Note Payable (“Flexible Note”) is payable from the Organization’s annual surplus cash. The Flexible Note payment should have been paid during the year ended December 31, 2025, based on the surplus cash as of December 31, 2024. Statement of Condition: The Organization did not timely make its debt payment due on its Flexible Note. The debt payment was made on March 25, 2026, which was approximately five months late. Cause: The Organization’s audit for the year ended December 31, 2024, was not finalized and issued until September 29, 2025, which was later in the year than usual. As a result, there was a management oversight and delay in identifying and making the required payment on the Flexible Note. Effect: The annual Flexible Note payment was approximately five months late. Known Questioned Costs: None Finding 2025-001 – Late payment on the Flexible Subsidy Note Payable (continued) Recommendation: We recommend that management implement procedures to ensure that the annual Flexible Note payment is timely remitted in accordance with the related agreements. Response Indicator: Agree View of Responsible Officials and Planned Corrective Action: The Organization’s audit for the year ended December 31, 2024, was not finalized and issued until September 29, 2025, which was later in the year than usual. As a result, there was a management oversight and delay in identifying and making the required payment on the Flexible Note. Management has implemented procedures to ensure that the annual Flexible Note payment is timely remitted in accordance with the related agreements.