Finding Text
Noncompliance Code P - Other Matters
Condition
Prior year financial statements were not filed in a timely manner.
Criteria
The HUD regulatory agreement requires annual submission of the financial statements within 90 days of the project’s fiscal year end.
Effect
None.
Cause
California was declared a federal disaster area due to the heavy rains in December 2022, and the Internal Revenue Service extended all due dates to October 15th, 2023 for income tax purposes. These events created significant disruptions in the timely completion of the 2022 financial statement audit. However, HUD refused to grant our request for an extension. The financial statements were submitted on May 2, 2023.
Recommendation
None required.
Auditee Response
Rainbow Plaza, Inc. confirms that corrective action has been completed.