Finding 540436 (2024-005)

Significant Deficiency Repeat Finding

Requirement

Questioned Costs

Year

2024

Accepted

2025-03-28

Audit: 350252

Organization: Fairbanks Community Homes 176-Hd-021 (AK)

Auditor: Hutchings & Associates CPAS

AI Summary

Core Issue: The Organization failed to submit unaudited financial statements to HUD within the required 90-day timeframe after the fiscal year ended.
Impacted Requirements: Non-compliance with the Capital Advance Program Regulatory Agreement due to lack of timely submission of financial statements.
Recommended Follow-Up: Implement controls to ensure timely reporting of both unaudited and audited financial statements to avoid future compliance issues.

Finding Text

Deadline for Federal Single Audit Criteria:According to the Capital Advance Program Regulatory Agreement, 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. 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. Effect of condition:The Organization is not in compliance with the Capital Advance Program Regulatory Agreement and has been notified by HUD of the late filing. Questioned Costs: Unknown. 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.

Corrective Action Plan

Failure to submit REAC report Name of Contact:Kendrick D. Blais, President Management's view:Management agrees with the finding. Corrective Action: Management will transfer surplus cash to the residual receipts account. Proposed Completion Date: June 30, 2025

Other Findings in this Audit

540433 2024-002

Significant Deficiency
540434 2024-003

Significant Deficiency Repeat
540435 2024-004

Significant Deficiency Repeat
540437 2024-002

Significant Deficiency
540438 2024-003

Significant Deficiency Repeat
540439 2024-004

Significant Deficiency Repeat
540440 2024-005

Significant Deficiency Repeat
1116875 2024-002

Significant Deficiency
1116876 2024-003

Significant Deficiency Repeat
1116877 2024-004

Significant Deficiency Repeat
1116878 2024-005

Significant Deficiency Repeat
1116879 2024-002

Significant Deficiency
1116880 2024-003

Significant Deficiency Repeat
1116881 2024-004

Significant Deficiency Repeat
1116882 2024-005

Significant Deficiency Repeat

Programs in Audit

ALN	Program Name	Expenditures
14.181	Supportive Housing for Persons with Disabilities	$60,519