Finding Text
? Criteria or specific requirement: Assignment of responsibility to the Sponsor (HOPE, Inc.) and Board of Directors that the audited financial statements are timely submitted to HUD Real Estate Assessment Center (REAC) ? Condition: REAC submissions of audited financial statements are due within 90 days of the Organization?s fiscal year end of June 30, 2022 and 2021 ? Effect: Could result in penalties charged by HUD due to the fact that the submissions were late for the last two fiscal years ? Cause: The Sponsor fired the property management company after the June 30, 2022 fiscal year and it was difficult for the Organization and independent auditor to acquire financial information from this property management company ? Recommendation: Before making any changes to management companies the Organization needs to verify that they have all necessary financial information to the independent auditor ? Management's response: The Sponsor and Board of Directors will consult with the independent auditor in the future before making any changes to management companies so they can plan accordingly