Finding Text
Section III - Federal Awards Findings and Questioned Costs
SIGNIFICANT DEFICIENCIES
Item #2021-1 – Real Estate Assessment Center (REAC) Report Filing
Criteria: Per the HUD Regulatory Agreement, the Corporation is required to provide an annual
audited financial statement submission through REAC within 90 days after the end of the fiscal
year of the reporting period.
Condition: The Corporation did not file the June 30, 2021 audited financial statements within
90 days of the end of the fiscal year.
Cause: Management needed additional time to file due to a delays from audit firm as well as
delays due to staffing changes at the management agent.
Effect: The Corporation is not in compliance with HUD laws and regulations.
Recommendation: We recommend that the Corporation implement necessary policies to ensure
audited financial statements are submitted timely and in accordance with HUD regulations.
Views of Responsible Officials and Planned Corrective Actions: The Corporation has filed
with REAC as of the date of the audit report. Delays in financial reporting were due to delays
from audit firm as well as delays due to staffing changes at the management agent.
No material weaknesses reported.