Finding 523133 (2024-001)

- Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-02-13

AI Summary

  • Answer: The Project missed HUD's deadline for annual financial filings due to software changes.
  • Trend: This is a repeat finding, indicating ongoing issues with timely financial reporting.
  • List: Management agrees with the finding and has put new policies in place to prevent future delays, aiming for compliance by June 30, 2025.

Finding Text

Condition: The Project did not comply with HUD’s annual filing requirement prior to the deadline. Criteria: Projects are required to ensure that financial status reports are presented in accordance with the terms of the applicable agreement between the Project and HUD. Context: Audited financial statements are due to HUD and REAC no later than 90 days after the fiscal year end. Cause: Due to a change in software, the annual filing was not completed timely. Effect: Untimely financial reporting. Identification as a Repeat Finding: Yes, see prior audit finding 2023-001. Recommendation: The Project should implement policies and procedures to ensure that annual financial reports are filed prior to deadlines. Amount of Questioned Cost: None Reporting Views of Responsible Officials: Management agrees with the finding and has implemented policies and procedures to ensure that this does not recur. Please refer to management’s corrective action plan. The Project plans to comply for the year ending June 30, 2025.

Corrective Action Plan

Recommendation: The Project will implement policies and procedures to ensure that annual financial reports are filed prior to deadlines. Action Taken: The Project’s outside financial accounting consultant updated and expanded its financial preparation software during the fiscal year and incurred some delays in integrating the two systems. Those delays have been resolved and the Project intends in filing the audit timely for the next year.

Categories

Reporting HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.129 Mortgage Insurance Nursing Homes, Intermediate Care Facilities, Board and Care Homes and Assisted Living Facilities $21.41M