Finding 598026 (2022-001)

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Requirement
P
Questioned Costs
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Year
2022
Accepted
2023-04-23

AI Summary

  • Core Issue: Financial statements for 2021 were not submitted on time to both REAC and the Federal Audit Clearinghouse.
  • Impacted Requirements: Submissions were due 90 days post fiscal year-end for REAC and within nine months for the Federal Audit Clearinghouse.
  • Recommended Follow-Up: Implement controls to ensure timely completion and submission of audits moving forward.

Finding Text

a. Statement of Condition: The audited financial statements, reports and supplemental information for the year ended December 31, 2021 were not submitted to the REAC within 90 days of the Corporation?s fiscal year end, and was not submitted to the Federal Audit Clearinghouse within nine months of the fiscal year end. b. Criteria: Audits of financial statements of HUD projects are required to be submitted to the REAC 90 days after the end of the fiscal year and audits of financial statements and supplemental information performed under Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (?Uniform Guidance?) are required to be submitted to the Federal Audit Clearinghouse 30 days after receipt of the auditors? report, or nine months after the end of the fiscal year, whichever comes first. c. Effect of Condition: The project is not in compliance with the requirements of HUD and Uniform Guidance. d. Cause of Condition: The audit of the financial statements was not completed in the specified time period. e. Recommendation: Gethsemane Manor Apartments should implement controls to ensure necessary information is available for timely completion of the audit and submission of the audited financial statements to the REAC and the Federal Audit Clearinghouse within the required timeframe. f. Views of Responsible Officials and Planned Corrective Actions: Management of the Gethsemane Manor Apartments agrees with the finding and the auditor?s recommendations have been adopted.

Categories

Allowable Costs / Cost Principles HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $2.47M