Harbor Homes, Inc.

Finding 2021-001: Timeliness of Reporting Federal Agency: U.S. Department of Housing and Urban Development Award Name: Mainstream Vouchers Program Year: 2021 CFDA #: 14.879 Criteria: Management was responsible for submitting timely reporting based on the terms of the grant agreement. Condition: During compliance testing, it was identified that the required unaudited financial information was not submitted timely to the Financial Assessment Sub-System (FASS-PH). Context: The required unaudited financial reporting was not submitted timely based on the terms of the grant agreement. Cause: Management has processes and controls over the reporting process, however, these were not updated to reflect the correct due date of the required report per the grant agreement. Effect: As a result of the condition, the Organization required reporting was not submitted timely based on the terms of the grant agreement. Recommendation: In the future, the Organization should ensure it implements appropriate processes and controls to ensure required reports are filed timely in accordance with the terms of the grant agreement. Views of Responsible Officials: Management acknowledges the finding. The existing processes and controls will be updated to reflect the correct due date of the required unaudited financial information to the awarding agency to ensure timely filings in the future.

Identifying Number: 2021-001: Timeliness of Reporting Criteria: Management was responsible for submitting timely reporting based on the terms of the grant agreement. Condition: During compliance testing, it was identified that the required unaudited financial information was not submitted timely to the Financial Assessment Sub-System (FASS-PH). Context: The required unaudited financial reporting was not submitted timely based on the terms of the grant agreement. Cause: Management has processes and controls over the reporting process, however, these were not updated to reflect the correct due date of the required report per the grant agreement. Effect: As a result of the condition, the Organization required reporting was not submitted timely based on the terms of the grant agreement. Recommendation: In the future, the Organization should ensure it implements appropriate processes and controls to ensure required reports are filed timely in accordance with the terms of the grant agreement. Contact: Ana Pancine, Chief Financial Officer Corrective Actions Taken or Planned: Management acknowledges the finding. The existing processes and controls will be updated to reflect the correct due date of the required unaudited financial information to the awarding agency to ensure timely filings in the future.