Finding Text
Criteria: Per the regulatory agreement, the Project is required to submit audited financial statements to HUD within 90 days of a Project’s fiscal year end. In addition, Uniform Guidance 2 CFR Subpart F 200.512, the audit must be completed and the data collection form and reporting package submitted within the earlier of 30 days after receipt of the auditor’s report, or nine-months after the end of the audit period.
Condition:The Organization did not meet its financial statement filing requirements under both HUD regulations and those under Uniform Guidance for the year ended.
Cause: Additional time was required to obtain certain information to complete the financial statement audit.
Effect: HUD does not have the financial information of the project available for review. HUD may request the holder of the note declare the note immediately due for non-compliance with the regulatory agreement.
Recommendation: We recommend that management implement internal controls to ensure that the audited financial statements are filed with HUD in accordance with the regulatory agreement.
Views of Responsible Officials: The Organization will follow the HUD filing requirements of the regulatory agreement going forward. The financial statements for the year ended April 30, 2023, will be submitted electronically to HUD no later than June 30, 2024.
Condition Status: Completed
Repeat Finding: No