Finding Text
Statement of Condition: The financial statements for the year ended May 31, 2025 were not filed electronically with HUD’s Real Estate Assessment Center within 90 days of fiscal year end. Criteria: HUD requires that the financial statements be electronically submitted to HUD’s Real Estate Assessment Center within 90 days of fiscal year- end. Questioned Cost: None. Cause: During a portion of the year ended May 31, 2025, the books were not kept complete in a condition that easily permitted an audit and meet the HUD annual reporting deadlines. Effect: Management is not in compliance with the requirement to timely submit the financial statements to HUD’s Real Estate Assessment Center. Recommendations: Management should institute procedures to ensure that the financial statements are filed with HUD’s Real Estate Assessment Center within 90 days of year-end. Auditor Noncompliance Code: Z – Other View of Responsible Officials: Management agrees with the finding. Management will establish procedures and monitor compliance with those procedures to ensure that the financial statements are filed electronically with HUD’s Real Estate Assessment Center within 90 days of fiscal year end.