Finding Text
Condition: The Organization failed to have its audit completed within nine months after its fiscal
year end of March 31, 2022. Criteria: The Regulatory Agreement with HUD states that within nine months following the end
of each fiscal year, Borrower shall prepare a financial report for the Borrower's fiscal year end,
or the portion thereof that started with the Borrower's assumption of financial responsibility.
Effect: The audit was not completed as of December 31, 2022, which is nine months after the
fiscal year end of March 31, 2022.
Cause: Management failed to have the audit completed within nine months since there was a
change in directors and management.
Recommendation: We recommend the Organization have its audit completed within nine months
of fiscal year end.
Auditee’s Response: The Organization will work towards having all materials ready in order for
the audit to be completed on time for the next fiscal year end.