Finding 571649 (2024-002)

Finding 2024-002: U.S. Department of Housing and Urban Development, Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects (Section 223(f)/207) Statement of Condition: The Organization did not submit its annual financial report, certified by a Certified Public Accountant, to HUD within 90 days following of the end of the fiscal year December 31, 2023. Criteria: HUD requirements, under the Uniform Financial Reporting Standards for HUD Housing Programs; Final Rule, and the Regulatory Agreement require that the Project's annual financial statements report be submitted to HUD within 90 days following the end of each fiscal year. Effect: Noncompliance with HUD regulations and the possibility that the Project could be subject to criminal and civil monetary penalties. Cause: The completion of the audit for the fiscal year ended December 31, 2023 was delayed due to the absence of required signatures. Context: A test was performed to review the most recent fiscal year audit submission to HUD. The annual financial statement report for the fiscal year December 31, 2023 was found to have not been submitted to HUD within 90 days following the end of the fiscal year December 31, 2023. Questioned Costs: $0 Recommendation: We recommend that the board of directors and management ensure the annual financial report, certified by a Certified Public Accountant, is submitted to HUD each year going forward within 90 days following the fiscal year end. Views of Responsible Officials and Corrective Action Plan: Management acknowledges the annual financial report, certified by a Certified Public Accountant, for the year ended December 31, 2023 was not submitted to HUD by the required due date. Management will provide additional oversight to ensure the annual financial reports are submitted each fiscal year going forward within required due dates. The annual financial report for the fiscal year ended December 31, 2023 was submitted to HUD on December 6, 2024.