Finding 397716 (2023-001)

Significant Deficiency
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-05-17

AI Summary

  • Core Issue: The Project submitted audited financial statements late to REAC for Section 811 funding.
  • Impacted Requirement: Audited financial statements must be submitted within 90 days after the fiscal year ends.
  • Recommended Follow-Up: Implement systems to ensure timely submission of financial statements to meet HUD requirements.

Finding Text

FINDING NO. 2023-001: LATE REAC SUBMISSION FOR SECTION 811 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES, ALN #14.181 The Project did not timely submit audited financial statements with the U.S. Department of Housing and Urban Development Real Estate Assessment Center (REAC). CRITERIA: The Project is required to submit audited financial statements with the REAC system within 90 days after year end. CAUSE OF CONDITION: The Project did not have systems in place to submit the audited financial statements within the required 90 days. RECOMMENDATION: Auditor recommends management implement systems to ensure audited financial statements are submitted to REAC as required by the US. Department of Housing and Urban Development within 90 days after the fiscal year end.

Corrective Action Plan

CORRECTIVE ACTION PLAN Breakthrough Phase I, Inc. respectfully submits the following corrective action plan for the year ended June 30, 2023. Purkey, Carter, Compton, Swann, & Carter, PLLC PO. Box 727 Morristown, Tennessee 37815 Audit period: July 1, 2022 —June 30, 2023 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Section A of the schedule, Summary of Audit Results, does not include findings and is not addressed. FINDINGS — FINANCIAL STATEMENT AUDIT None FINDINGS — FEDERAL AWARD PROGRAMS AUDITS FINDING NO. 2023-001: Late REAC submission for Section 811 Supportive Housing for Persons with Disabilities, ALN #14.181 Criteria: The Project is required to submit audited financial statements with the REAC system within 90 days after year end. Cause of Condition: The Project did not have systems in place to submit the audited financial statements within the required 90 days. Recommendation: Auditor recommends management implement systems to ensure audited financial statements are submitted to REAC as required by the US. Department of Housing and Urban Development within 90 days after the fiscal year end. Action Taken: Personnel at Breakthrough Corporation have contracted with an outside accounting firm to handle the bookkeeping and will ensure that the year end financial reports will be provided to necessary third parties as soon as possible after the end of the fiscal year.

Categories

HUD Housing Programs Reporting

Other Findings in this Audit

  • 397717 2023-002
    Significant Deficiency
  • 974158 2023-001
    Significant Deficiency
  • 974159 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $57,135