Finding Text
Section III - Findings and Questioned Costs - Major Federal Program Audit
SIGNIFICANT DEFICIENCIES
Item #2022-1 - 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, 2022 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