Finding 555946 (2024-004)

- Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2025-04-25
Audit: 354657
Organization: The Pinemont Apartments, Inc. (TX)

AI Summary

  • Core Issue: The financial statement for the year ending December 31, 2024, was submitted late to HUD's REAC.
  • Impacted Requirements: Submission deadlines include March 31, 2025, for financial statements and a Data Collection Form within 30 days post-audit or nine months after year-end.
  • Recommended Follow-Up: Ensure timely submission of financial statements to REAC to avoid future compliance issues.

Finding Text

Findings reference number: 2024-004 - Title and AL Number of Federal Program: Mortgage Insurance for Purchase or Refinancing of Existing Multifamily Housing Projects (Sec 223(f)), AL 14.155 - Type of finding: Compliance - Resolution Status: In process - Population size: N/A - Sample size: N/A - Repeat finding: Yes - Criteria: The financial statement submission to HUD's Real Estate Assessment Center (REAC) for the year ended December 31, 2024 is due by March 31, 2025. - The Data Collection Form (DCF) should be submitted to the by the earlier of 30 days after receipt of the final audit report or nine months after year end. - Condition: The financial statement submission for the year ending December 31, 2024 was filed late. - Cause: The bookkeeper for the Project was unable to close the books and complete the year-end accounting on a timely basis. - Effect: The REAC submission was filed late. - Noncompliance code: Z – Other - Questioned costs: None - Reporting views of officials: Management agrees with the finding and will make every effort to file future reports on a timely basis. - Contract number: 114-11392 - Context: This was noted while performing procedures on the reporting requirements. - Recommendation: The audited financial statements should be submitted to REAC by the reporting deadline. - Auditors' summary of auditee's comments: They are in agreement. - Completion date: 12/31/2025 - Response: In the future, management will ensure that the financial statements are submitted to REAC by the reporting deadline.

Corrective Action Plan

The financial statements were required to be submitted to HUD’s Real Estate Assessment Center by March 31, 2025, but were not submitted timely. Response: The financial statements were submitted on April 10, 2025. In the future, we will ensure that the financial statements are submitted by the March 31 deadline.

Categories

HUD Housing Programs Procurement, Suspension & Debarment Reporting

Other Findings in this Audit

  • 555943 2024-001
    Significant Deficiency
  • 555944 2024-002
    Significant Deficiency
  • 555945 2024-003
    Significant Deficiency
  • 1132385 2024-001
    Significant Deficiency
  • 1132386 2024-002
    Significant Deficiency
  • 1132387 2024-003
    Significant Deficiency
  • 1132388 2024-004
    - Repeat

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $2.91M
14.195 Project-Based Rental Assistance (pbra) $1.05M