Finding Text
Failure to submit REAC reports Criteria:According to the Capital Advance Program Regulatory Agreeement, the Organization is required to submit electronic unaudited annual financial statements which are certified by the owner within 90 days after the end of the fiscal year. Auditor certified electronic financial statements are required to be submitted no later than nine months after year end. Condition:Unaudited financial statements that were certified by the owner were not submitted to HUD within 90 days after the end of the fiscal year. Questioned Costs: Unknown. Context:Upon review of the REAC submission, the the owner submission and the auditor submission were completed after the required deadline. Effect:The Organization is not in compliance with the Capital Advance Program Regulatory Agreement and has been notified by HUD of the late filing. Cause:The Organization did not have controls in place to submit the owner financial statements and were not able to complete the audit in a timely manner to submit the financial statements before the deadline.
Recommendation: The Organization should implement controls to ensure future compliance and timely reporting of the unaudited and audited financial statements. Identification of repeat finding: This is an ongoing finding. Management's Response: Management concurs with the finding. See Corrective Action Plan.