Finding Text
Section II – Financial Statement and Section III - Federal Award Finding
Finding #2024-002: Section 8 Housing Assistance Payments Program, Assistance Listing: 14.195 and
Mortgage Insurance Section 223(f) Insured Loan Assistance Listing: 14.155
Type of Finding: Material Weakness
Condition: On November 15, 2023, the Corporation’s tax-exempt status was
revoked due to failure to file federal tax return Form 990 for three
consecutive years.
Criteria: The nonprofit corporation financed the Project with the U.S. Department
of Housing and Urban Development (HUD) pursuant to a mortgage note
regulated by HUD.
Effect: The Corporation is in violation of the compliance requirement of its
major federal programs.
Questioned Cost: $0
Cause: Federal tax return Form 990’s were not filed for three consecutive
years.
Recommendation: We recommend the Corporation file all necessary forms to reinstate the
Corporations’ tax-exempt status.
Management’s View: Management is in agreement with the finding. The corrective action plan
is included in the audit report.
Auditor’s Comment:
The Form 990’s for fiscal year 2021, 2022 and 2023 have been filed.
The Corporation intends to apply for reinstatement of tax-exempt status.