Finding Text
Compliance Requirement: Reporting
Criteria: In accordance with the Department of Housing and Urban Development Chapter 3 Audit Guidance, the regulatory agreement related to the Project requires that the Project submit an annual operating budget 30 days before the beginning of each fiscal year.
Condition: During our audit procedures and per review of prior year audit Finding 2022-005, it
was noted that management failed to prepare and submit an annual operating budget to HUD for the fiscal year ending June 30, 2023. Management submitted an annual operating budget to HUD approximately 23 days after the fiscal year began.
Cause: Management was unaware of certain reporting requirements
Effect: The Organization is not in full compliance with the requirements prescribed in its
regulatory agreement with HUD.
Recommendation: To avoid potential non-compliance, we recommend that the executive director and property manager prepare and submit an annual operating budget no later than 30 days prior to the beginning of the next fiscal year.
Management’s Response: Refer to Corrective Action Plan.