Finding Text
Finding reference number: #2025-002 Assistance Listing (federal award identification number and year): Mortgage Insurance for Rental Housing, Assistance Listing No. 14.134 (Project identification number 073-35311, 2007) Auditor non-compliance code: Z - Other Finding resolution status: Resolved Universe population size: The universe population size is not applicable to the finding. Statistically valid sample: Not applicable Name of federal agency: Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $0 Was the sampling statistically valid: N/A Statement of condition of #2025-002: The Corporation submitted the owner certified financial report within ninety (90) days following the end of the fiscal year ending December 31, 2025, however did not furnish HUD with a complete audited financial report within nine (9) months following the end of the fiscal year ending December 31, 2025. 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 or potential 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. Reporting response: Management concurs with the finding and recommendation. The audited financial statements have been submitted to HUD.