Finding Text
Statement of Condition: The annual financial statements for the year ended June 30, 2023 were not filed by
the required due date of September 30, 2023 to REAC.
Criteria: In accordance with HUD requirements, the audited financial statements must be completed and
submitted to REAC by September 30, 2023.
Cause: Management did not have an approved contract renewal with HUD for the year ended June 30,
2023 until September 27, 2023. The contract renewal application had errors when originally submitted and
there was a lack of follow up with HUD due to significant turnover at the Project causing a delay in obtaining
HUD approval. As a result, the financial statements could not be properly prepared in time for the submission
deadline to be met.
Effect: The annual financial statements for the year ended June 30, 2023 were not submitted to REAC in a
timely manner.
Recommendation: We recommend that management ensure the HUD contract renewal application is
completed accurately and submitted timely in order to receive HUD approval at the start of the fiscal year.
This is extremely important to ensure the timely submission of the audited financial statements to REAC.
Views of Responsible Officials and Planned Corrective Actions: Upper Bay Counseling and Support
Services, Inc. will have Senior Management and Financial staff working together via scheduled internal
meetings to ensure the HUD approval at the start of the fiscal year is obtained. The contract renewal
application and required follow up will be on the agendas of the internal HUD meetings.