Finding Type:
- Immaterial noncompliance with major program requirements
- Material weakness in internal control over compliance
Title and Assistance Listing Number of Federal Program - U.S. Department of Housing and Urban Development - Section 232 Mortgage Insurance; 14.129
Finding Resolution Status - Resolved
Information on Universe and Population Size - Surplus cash calculated as of June 30, 2023 is required to be deposited within 90 days of June 30, 2023.
Sample Size Information - N/A
Identification of Repeat Finding and Finding Reference Number - N/A
Criteria - The Corporation should deposit surplus cash within the time frame specified in the FRAG Guide.
Statement of Condition - the Corporation did not deposit prior year surplus cash totaling $19,794 to the residual receipts account during the year ended June 30, 2024, which was calculated as of June 30, 2023, as required by the regulatory agreement and FRAG Guide.
Cause - The Corporation failed to monitor the cash requirements of the residual receipts account as specified by the FRAG Guide.
Effect or Potential Effect - The residual receipts account was not funded in accordance with the FRAG Guide.
Auditor Noncompliance Code - B - Failure to make required residual receipt deposits
Reporting Views of Responsible Officials - Management agrees with the finding as reported and has taken steps to improve internal controls over required deposits to the residual receipts account.
Context - During our audit procedures performed over residual receipts, it was noted that prior year surplus cash totaling $19,794 was not deposited to the residual receipts account as required by the regulatory agreement and the FRAG Guide.
Recommendation - The underfunded amount of surplus cash during the year ended June 30, 2024 of $19,794 should be deposited into the residual receipts account as soon as possible. In addition, management should calculate surplus cash annually and deposit the amount of surplus cash within 90 days of year end.
Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations - Management should deposit surplus cash within the time frame required by the FRAG Guide
Response Indicator - Agree
Completion Date - November 13, 2024
Response - Management acknowledges noncompliance in the current fiscal year and has taken measures to improve internal controls over compliance. Management deposited the surplus cash amount of $19,794 into residual receipts on November 13, 2024.
Finding Type:
- Immaterial noncompliance with major program requirements
- Significant deficiency in internal control over compliance
Title and Assistance Listing Number of Federal Program - U.S. Department of Housing and Urban Development - Section 232 Mortgage Insurance; 14.129
Finding Resolution Status - Resolved
Information on Universe and Population Size - Required deposits to the replacement reserve account.
Sample Size Information - N/A
Identification of Repeat Finding and Finding Reference Number - N/A
Criteria - The Corporation should have made 12 monthly deposits totaling $78,577 into the replacement reserve account as required by the regulatory agreement.
Statement of Condition - The Corporation failed to make the required reserve for replacements deposits in the current fiscal year.
Cause - The Corporation failed to monitor the cash requirements of the reserve for replacement account as specified by the regulatory agreement.
Effect or Potential Effect - The replacement reserve account was underfunded in the current fiscal year by $4,688.
Auditor Noncompliance Code - N - Reserve for replacements deposits
Reporting Views of Responsible Officials - Management agrees with the finding as reported.
Context - During our audit procedures performed over replacement reserve deposits, it was noted that the replacement reserve account was underfunded by $4,688 based on the minimum deposit amount required by the regulatory agreement.
Recommendation - All required deposits should be made in accordance with the regulatory agreement.
Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations - Management should make the underfunded amount of $4,688 deposit to the replacement reserve account as soon as possible.
Response Indicator - Agree
Completion Date - November 13, 2024
Response - Management acknowledges noncompliance in the current fiscal year and has taken measures to improve internal controls over compliance. Management deposited $4,688 into the replacement reserve account on November 13, 2024
Finding Type:
- Immaterial noncompliance with major program requirements
- Material weakness in internal control over compliance
Title and Assistance Listing Number of Federal Program - U.S. Department of Housing and Urban Development - Section 232 Mortgage Insurance; 14.129
Finding Resolution Status - Resolved
Information on Universe and Population Size - Surplus cash calculated as of June 30, 2023 is required to be deposited within 90 days of June 30, 2023.
Sample Size Information - N/A
Identification of Repeat Finding and Finding Reference Number - N/A
Criteria - The Corporation should deposit surplus cash within the time frame specified in the FRAG Guide.
Statement of Condition - the Corporation did not deposit prior year surplus cash totaling $19,794 to the residual receipts account during the year ended June 30, 2024, which was calculated as of June 30, 2023, as required by the regulatory agreement and FRAG Guide.
Cause - The Corporation failed to monitor the cash requirements of the residual receipts account as specified by the FRAG Guide.
Effect or Potential Effect - The residual receipts account was not funded in accordance with the FRAG Guide.
Auditor Noncompliance Code - B - Failure to make required residual receipt deposits
Reporting Views of Responsible Officials - Management agrees with the finding as reported and has taken steps to improve internal controls over required deposits to the residual receipts account.
Context - During our audit procedures performed over residual receipts, it was noted that prior year surplus cash totaling $19,794 was not deposited to the residual receipts account as required by the regulatory agreement and the FRAG Guide.
Recommendation - The underfunded amount of surplus cash during the year ended June 30, 2024 of $19,794 should be deposited into the residual receipts account as soon as possible. In addition, management should calculate surplus cash annually and deposit the amount of surplus cash within 90 days of year end.
Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations - Management should deposit surplus cash within the time frame required by the FRAG Guide
Response Indicator - Agree
Completion Date - November 13, 2024
Response - Management acknowledges noncompliance in the current fiscal year and has taken measures to improve internal controls over compliance. Management deposited the surplus cash amount of $19,794 into residual receipts on November 13, 2024.
Finding Type:
- Immaterial noncompliance with major program requirements
- Significant deficiency in internal control over compliance
Title and Assistance Listing Number of Federal Program - U.S. Department of Housing and Urban Development - Section 232 Mortgage Insurance; 14.129
Finding Resolution Status - Resolved
Information on Universe and Population Size - Required deposits to the replacement reserve account.
Sample Size Information - N/A
Identification of Repeat Finding and Finding Reference Number - N/A
Criteria - The Corporation should have made 12 monthly deposits totaling $78,577 into the replacement reserve account as required by the regulatory agreement.
Statement of Condition - The Corporation failed to make the required reserve for replacements deposits in the current fiscal year.
Cause - The Corporation failed to monitor the cash requirements of the reserve for replacement account as specified by the regulatory agreement.
Effect or Potential Effect - The replacement reserve account was underfunded in the current fiscal year by $4,688.
Auditor Noncompliance Code - N - Reserve for replacements deposits
Reporting Views of Responsible Officials - Management agrees with the finding as reported.
Context - During our audit procedures performed over replacement reserve deposits, it was noted that the replacement reserve account was underfunded by $4,688 based on the minimum deposit amount required by the regulatory agreement.
Recommendation - All required deposits should be made in accordance with the regulatory agreement.
Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations - Management should make the underfunded amount of $4,688 deposit to the replacement reserve account as soon as possible.
Response Indicator - Agree
Completion Date - November 13, 2024
Response - Management acknowledges noncompliance in the current fiscal year and has taken measures to improve internal controls over compliance. Management deposited $4,688 into the replacement reserve account on November 13, 2024