Finding Text
Finding number: 2024-001
Federal Assistance Listing No: 14.139
Program name: Mortgage Insurance Rental Housing in Urban Renewal Areas
Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: n/a
Grant number: n/a
Federal award year: 2024
Finding type: Significant deficiency over compliance
Compliance requirement: Reporting
Questioned costs: n/a
Repeat finding: Yes
Criteria: In accordance with the requirements of CFR §200.512, the audit shall be completed and the data collection form and reporting package shall be submitted to the Federal Audit Clearinghouse within the earlier of 30 days after receipt of the auditor’s report, or nine months after the end of the audit period.
Condition: M. Carter Plaza did not electronically submit its June 30, 2023 Single Audit reporting package to the Federal Clearinghouse within the required time period.
Cause: M. Carter Plaza’s 2023 accounting records were not closed in a timely matter and the audit was not completed prior to the data collection form due date.
Effect: M. Carter Plaza did not comply with CFR §200.512. The late submission results in non-compliance for all federal programs.
Audit Recommendation: We recommend that management implement procedures to ensure that all required reporting is submitted in a timely manner and in accordance with CFR §200.512 deadlines.
Management’s Response: The closing of books and preparation for audit procedures is being addressed via improvements in internal controls related to property accounting and month end closing procedures as well as the hiring of more experienced staff during fiscal year 2024-2025. The organization anticipates that these improvements will allow for the audit to be completed within the required timeframe in the upcoming cycle