Finding Text
Criteria or Specific Requirement -Projects are required to ensure that financial status reports are presented in accordance with the terms of the applicable agreement between the Project and HUD. Condition -As part of our audit procedures, we determined that the Project did not comply with HUD?s annual filing requirement prior to the deadline. Context -Audited financial statements are due to HUD and REAC no later than 90 days after the fiscal year end. Questioned Cost - None.Cause - Due to turnover in personnel, filings were not completed timely Effect - Untimely financial reporting. Recommendation - The Project should implement policies and procedures to ensure that annual financial reports are filed prior to deadlines. Views of Responsible Officials and Planned Corrective Actions - Management agrees with the finding and will implement policies and procedures to ensure that this problem does not recur. Please refer to the corrective action plan. As a result of COVID curtailments and a resulting national staffing shortage in the accounting profession, there were challenges to completing the 2022 and 2021 annual filing requirements prior to the deadline. Management has reviewed staffing and monthly and annual close project plans to verify that staffing and plans to issue and furnish annual financial statements timely are sufficient. The Project plans on being back in compliance for the year ending June 30, 2023, requirements.