Finding 520955 (2021-001)

Condition/Context The Corporation did not furnish HUD with a complete annual financial report within ninety (90) days following the end of the fiscal year ending December 31, 2021 or within nine months of fiscal year end if an owner certified submission was furnished to HUD. Criteria The Regulatory Agreement requires, within ninety (90) days, or such period established in writing by HUD, following the end of each fiscal year, the Corporation shall furnish HUD with a complete annual financial report based upon an examination of the books and records of the Corporation prepared in accordance with GAAP, audited in accordance with Generally Accepted Auditing Standards and Government Auditing Standards and any additional requirements of HUD unless the report is waived in writing by HUD. Effect or Potential Effect The Corporation is not in compliance with the Regulatory Agreement. Cause The Owner and Management Agent had a change in auditors and did not provide financial information in a timely manner. Identification as a Repeat Finding 2020-001 Recommendation The Corporation should file the December 31, 2021 financial statements as soon as possible and should ensure the annual financial report is filed within 90 days in future periods or within nine months of fiscal year end if an owner certified submission was furnished to HUD. Auditor Noncompliance Code: Z - Other Finding Resolution Status Open. Reporting Views of Responsible Officials Management will make efforts to submit the annual report more timely going forward.