Finding 966876 (2023-004)

Material Weakness
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-03-30

AI Summary

  • Core Issue: The annual financial statements for the year ended June 30, 2023, were not filed by the September 30, 2023 deadline.
  • Impacted Requirements: HUD mandates that audited financial statements be submitted to REAC by September 30 each year.
  • Recommended Follow-Up: Management should ensure timely and accurate submission of the HUD contract renewal application to avoid future delays in financial statement submissions.

Finding Text

Statement of Condition: The annual financial statements for the year ended June 30, 2023 were not filed by the required due date of September 30, 2023 to REAC. Criteria: In accordance with HUD requirements, the audited financial statements must be completed and submitted to REAC by September 30, 2023. Cause: Management did not have an approved contract renewal with HUD for the year ended June 30, 2023 until September 27, 2023. The contract renewal application had errors when originally submitted and there was a lack of follow up with HUD due to significant turnover at the Project causing a delay in obtaining HUD approval. As a result, the financial statements could not be properly prepared in time for the submission deadline to be met. Effect: The annual financial statements for the year ended June 30, 2023 were not submitted to REAC in a timely manner. Recommendation: We recommend that management ensure the HUD contract renewal application is completed accurately and submitted timely in order to receive HUD approval at the start of the fiscal year. This is extremely important to ensure the timely submission of the audited financial statements to REAC. Views of Responsible Officials and Planned Corrective Actions: Upper Bay Counseling and Support Services, Inc. will have Senior Management and Financial staff working together via scheduled internal meetings to ensure the HUD approval at the start of the fiscal year is obtained. The contract renewal application and required follow up will be on the agendas of the internal HUD meetings.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 390432 2023-002
    Material Weakness
  • 390433 2023-003
    Material Weakness
  • 390434 2023-004
    Material Weakness
  • 390435 2023-002
    Material Weakness
  • 390436 2023-003
    Material Weakness
  • 390437 2023-004
    Material Weakness
  • 966874 2023-002
    Material Weakness
  • 966875 2023-003
    Material Weakness
  • 966877 2023-002
    Material Weakness
  • 966878 2023-003
    Material Weakness
  • 966879 2023-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $43,511