Finding No. 2022-001 (repeats 2009-1) Federal Assistance Listing #14.134 Mortgage Insurance - Rental Housing Federal Assistance Listing #14.195 Section 8 Housing Assistance Payments Criteria The Organization is restricted by the Regulatory Agreement as to the use of Project funds, which prohibits the loan of Project funds to an affiliate. Condition As a result of the HUD OIG audit dated August 9, 2009, HUD quantified ineligible costs that are required to be repaid by Casa Otonal, Inc., an affiliate of Casa Otonal Housing Corporation. The Organization is working with both the local HUD office and Casa Otonal, Inc. to work out the repayment as Casa Otonal, Inc. has limited assets available for repayment. Cause Prior year ineligible costs resulted in a loan to an affiliate. Effect or Potential Effect Prior year ineligible costs resulted in a loan to an affiliate. Questioned Costs None Context There were no current year questioned costs or unauthorized loans. Recommendation We recommend that the Board of Directors continues to work with HUD to resolve the outstanding balance. Auditor Noncompliance Code Z ? Other ? prior year unauthorized loans from Project funds Finding Resolution Status: In process Views of Responsible Officials and Planned Corrective Actions The management agent is not involved in the resolution of this finding. The Board of Directors is working directly with HUD as the finding occurred prior to engaging the current management company.
Criteria In accordance with the regulatory agreement, residual receipts reserve deposits should be made within 90 days of year end. Condition During the year ended June 30, 2022, management did not make the required residual receipts reserve deposit in the amount of $107,888 within 90 days of year end, as required by the HUD regulatory agreement. The residual receipts amount was deposited on October 5, 2021. Cause Controls are not in place to ensure that required residual receipts reserve deposits are made timely. Effect or Potential Effect The Organization is not in compliance with the requirements of the regulatory agreement. Questioned Costs None Context There error was made in the surplus cash required to be deposited within 90 days of year end. Recommendation Management should establish internal controls and procedures to ensure that required residual receipts reserve deposits are made timely. Auditor Noncompliance Code: B - Failure to make required residual receipts deposits Views of Responsible Officials and Planned Corrective Actions While the residual receipts reserve deposit was made within 3 business days of receipt of the final audit, it exceeded the HUD 90-day requirement. In the future, management will calculate and make an estimated deposit so that the deposit can be made timely and then make any necessary adjustment once the final audit has been issued.
Finding No. 2022-001 (repeats 2009-1) Federal Assistance Listing #14.134 Mortgage Insurance - Rental Housing Federal Assistance Listing #14.195 Section 8 Housing Assistance Payments Criteria The Organization is restricted by the Regulatory Agreement as to the use of Project funds, which prohibits the loan of Project funds to an affiliate. Condition As a result of the HUD OIG audit dated August 9, 2009, HUD quantified ineligible costs that are required to be repaid by Casa Otonal, Inc., an affiliate of Casa Otonal Housing Corporation. The Organization is working with both the local HUD office and Casa Otonal, Inc. to work out the repayment as Casa Otonal, Inc. has limited assets available for repayment. Cause Prior year ineligible costs resulted in a loan to an affiliate. Effect or Potential Effect Prior year ineligible costs resulted in a loan to an affiliate. Questioned Costs None Context There were no current year questioned costs or unauthorized loans. Recommendation We recommend that the Board of Directors continues to work with HUD to resolve the outstanding balance. Auditor Noncompliance Code Z ? Other ? prior year unauthorized loans from Project funds Finding Resolution Status: In process Views of Responsible Officials and Planned Corrective Actions The management agent is not involved in the resolution of this finding. The Board of Directors is working directly with HUD as the finding occurred prior to engaging the current management company.
Criteria In accordance with the regulatory agreement, residual receipts reserve deposits should be made within 90 days of year end. Condition During the year ended June 30, 2022, management did not make the required residual receipts reserve deposit in the amount of $107,888 within 90 days of year end, as required by the HUD regulatory agreement. The residual receipts amount was deposited on October 5, 2021. Cause Controls are not in place to ensure that required residual receipts reserve deposits are made timely. Effect or Potential Effect The Organization is not in compliance with the requirements of the regulatory agreement. Questioned Costs None Context There error was made in the surplus cash required to be deposited within 90 days of year end. Recommendation Management should establish internal controls and procedures to ensure that required residual receipts reserve deposits are made timely. Auditor Noncompliance Code: B - Failure to make required residual receipts deposits Views of Responsible Officials and Planned Corrective Actions While the residual receipts reserve deposit was made within 3 business days of receipt of the final audit, it exceeded the HUD 90-day requirement. In the future, management will calculate and make an estimated deposit so that the deposit can be made timely and then make any necessary adjustment once the final audit has been issued.
Finding No. 2022-001 (repeats 2009-1) Federal Assistance Listing #14.134 Mortgage Insurance - Rental Housing Federal Assistance Listing #14.195 Section 8 Housing Assistance Payments Criteria The Organization is restricted by the Regulatory Agreement as to the use of Project funds, which prohibits the loan of Project funds to an affiliate. Condition As a result of the HUD OIG audit dated August 9, 2009, HUD quantified ineligible costs that are required to be repaid by Casa Otonal, Inc., an affiliate of Casa Otonal Housing Corporation. The Organization is working with both the local HUD office and Casa Otonal, Inc. to work out the repayment as Casa Otonal, Inc. has limited assets available for repayment. Cause Prior year ineligible costs resulted in a loan to an affiliate. Effect or Potential Effect Prior year ineligible costs resulted in a loan to an affiliate. Questioned Costs None Context There were no current year questioned costs or unauthorized loans. Recommendation We recommend that the Board of Directors continues to work with HUD to resolve the outstanding balance. Auditor Noncompliance Code Z ? Other ? prior year unauthorized loans from Project funds Finding Resolution Status: In process Views of Responsible Officials and Planned Corrective Actions The management agent is not involved in the resolution of this finding. The Board of Directors is working directly with HUD as the finding occurred prior to engaging the current management company.
Criteria In accordance with the regulatory agreement, residual receipts reserve deposits should be made within 90 days of year end. Condition During the year ended June 30, 2022, management did not make the required residual receipts reserve deposit in the amount of $107,888 within 90 days of year end, as required by the HUD regulatory agreement. The residual receipts amount was deposited on October 5, 2021. Cause Controls are not in place to ensure that required residual receipts reserve deposits are made timely. Effect or Potential Effect The Organization is not in compliance with the requirements of the regulatory agreement. Questioned Costs None Context There error was made in the surplus cash required to be deposited within 90 days of year end. Recommendation Management should establish internal controls and procedures to ensure that required residual receipts reserve deposits are made timely. Auditor Noncompliance Code: B - Failure to make required residual receipts deposits Views of Responsible Officials and Planned Corrective Actions While the residual receipts reserve deposit was made within 3 business days of receipt of the final audit, it exceeded the HUD 90-day requirement. In the future, management will calculate and make an estimated deposit so that the deposit can be made timely and then make any necessary adjustment once the final audit has been issued.
Finding No. 2022-001 (repeats 2009-1) Federal Assistance Listing #14.134 Mortgage Insurance - Rental Housing Federal Assistance Listing #14.195 Section 8 Housing Assistance Payments Criteria The Organization is restricted by the Regulatory Agreement as to the use of Project funds, which prohibits the loan of Project funds to an affiliate. Condition As a result of the HUD OIG audit dated August 9, 2009, HUD quantified ineligible costs that are required to be repaid by Casa Otonal, Inc., an affiliate of Casa Otonal Housing Corporation. The Organization is working with both the local HUD office and Casa Otonal, Inc. to work out the repayment as Casa Otonal, Inc. has limited assets available for repayment. Cause Prior year ineligible costs resulted in a loan to an affiliate. Effect or Potential Effect Prior year ineligible costs resulted in a loan to an affiliate. Questioned Costs None Context There were no current year questioned costs or unauthorized loans. Recommendation We recommend that the Board of Directors continues to work with HUD to resolve the outstanding balance. Auditor Noncompliance Code Z ? Other ? prior year unauthorized loans from Project funds Finding Resolution Status: In process Views of Responsible Officials and Planned Corrective Actions The management agent is not involved in the resolution of this finding. The Board of Directors is working directly with HUD as the finding occurred prior to engaging the current management company.
Criteria In accordance with the regulatory agreement, residual receipts reserve deposits should be made within 90 days of year end. Condition During the year ended June 30, 2022, management did not make the required residual receipts reserve deposit in the amount of $107,888 within 90 days of year end, as required by the HUD regulatory agreement. The residual receipts amount was deposited on October 5, 2021. Cause Controls are not in place to ensure that required residual receipts reserve deposits are made timely. Effect or Potential Effect The Organization is not in compliance with the requirements of the regulatory agreement. Questioned Costs None Context There error was made in the surplus cash required to be deposited within 90 days of year end. Recommendation Management should establish internal controls and procedures to ensure that required residual receipts reserve deposits are made timely. Auditor Noncompliance Code: B - Failure to make required residual receipts deposits Views of Responsible Officials and Planned Corrective Actions While the residual receipts reserve deposit was made within 3 business days of receipt of the final audit, it exceeded the HUD 90-day requirement. In the future, management will calculate and make an estimated deposit so that the deposit can be made timely and then make any necessary adjustment once the final audit has been issued.