Finding 6791 (2023-002)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2023-12-28
Audit: 8738
Organization: Concord Residential Club (CA)

AI Summary

  • Core Issue: Concord Residential Club missed the deadline for submitting its annual audit to HUD.
  • Impacted Requirements: The Organization failed to comply with HUD's requirement to submit audited financial statements within 90 days after the fiscal year end.
  • Recommended Follow-Up: Implement controls to ensure timely submission of audited financial statements to HUD.

Finding Text

Statement of condition 2023-2: Concord Residential Club (the Organization) did not submit its annual audit to HUD within the required time frame as required by the Regulatory Agreement with HUD. Criteria: In accordance with HUD's Uniform Financial Reporting Standards rule, annually, the Organization is required to submit a financial statement, prepared in accordance with generally accepted accounting principles (GAAP), in the electronic format specified by HUD. The audited financial statements are due 90 days after its fiscal year end. Cause: The Organization did not have the accounting staff in place to prepare the accounting records and required documentation in a timely manner after its year end, and therefore was unable to submit the audited financial statements on time. Effect: The Organization did not submit its audited financial statements on time with HUD. Recommendation: The Organization should have controls in place to ensure the timely submission of the audited financial statements to HUD.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Actions: Due to the effects of Covid and the current workforce pool, it was difficult finding and retaining qualified accounting personnel. In the past, the Organization experienced little turnover in the accounting department. Moving forward, we have found qualified accounting personnel that will assist the Organization in making sure the audited financial statements are submitted to HUD by the deadline. Management will ensure that the audited financial statements are submitted in a timely manner.

Categories

HUD Housing Programs Reporting

Other Findings in this Audit

  • 6790 2023-001
    Material Weakness
  • 583232 2023-001
    Material Weakness
  • 583233 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $709,738
14.195 Section 8 Housing Assistance Payments Program $355,145