Finding Text
Criteria - In accordance with HUD's Uniform Financial Reporting Standards (UFRS) rule and 24 CFR section 5.801, owners are required to submit financial information to HUD, no later than 90 days after the end of the fiscal year. Condition - The Company did not submit financial information to HUD within 90 days after the end of the fiscal year. Cause - The audit was scheduled for July 2023 creating the need for an owners certified (unaudited) submission to HUD but remained unsubmitted by the Company. Effect - The Company is not in compliance with financial reporting requirements. Questioned Costs - None identified. Repeat Finding - This is a repeat of finding 2021-002 as reported for the year ended December 31, 2021. Recommendation - The Company should review year end procedures to ensure timely and accurate reporting based on HUD's UFRS. Additionally, the Company may also elect to schedule the annual audit closer to the end of the fiscal year to bypass the need for the owner certified submission. Management's Response - The Company will work to engage its auditors to perform the December 31, 2023 audit in March of 2024 and complete the audited submission within 90 days after the end of the fiscal year.