Finding 971004 (2023-001)

2023 – 001 Type of Finding: • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: Financial Report Requirements requires quarterly financial reports to be prepared and due within 60 days after the end of the reporting quarter. Condition: Quarterly financial statements not submitted to loan servicer within the 60 day period allotted, as the first quarter report was not submitted until November 4, 2022. Questioned costs: None Context: During our testing, it was noted that the Project did not submit reports until 3 days after they were due for the 1st quarter. Cause: Turnover in controller position lead to oversight of this being submitted in time. Effect: The quarterly report was not submitted in time in accordance with the Regulatory Agreement. Repeat finding: Not a repeat finding Recommendation: We recommend the Project review controls to include processes to ensure timely submission. Views of responsible officials: There is no disagreement with the audit finding.