Audit 39222

Finding Type - Immaterial noncompliance with major program requirements Title and Assistance Listing Number of Federal Program -14.155 - U S. Department of Housing and Urban Development - Section 223(f) HUD-Insured Mortgage Finding Resolution Status - Cleared Information on Universe and Population Size - N/A Sample Size Information - N/A Identification of Repeat Finding and Finding Reference Number - N/A Criteria - The Organization should have made 8 monthly deposits of 52,175 and 4 monthly deposits of 52,225 into the reserve for replacements account as required by the regulatory agreement. Statement of Condition - The Organization failed to make the required reserve for replacements deposits in the current fiscal year. Cause - The Organization 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 $200 Auditor Noncompliance Code - N - Reserve for replacements deposits Context - An increase in the required deposits was approved effective September 2022; however, the monthly amount deposited was not updated to reflect this increase. 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 required reserve for replacements deposits in the current fiscal year. Response Indicator - Agree Response - Management detected the error and deposited the underfunded amount in March 2023. Management acknowledges noncompliance in the current fiscal year and has taken measures to improve internal controls over compliance.

Finding Type - Immaterial noncompliance with major program requirements Title and Assistance Listing Number of Federal Program -14.155 - U S. Department of Housing and Urban Development - Section 223(f) HUD-Insured Mortgage Finding Resolution Status - Cleared Information on Universe and Population Size - N/A Sample Size Information - N/A Identification of Repeat Finding and Finding Reference Number - N/A Criteria - The Organization should have made 8 monthly deposits of 52,175 and 4 monthly deposits of 52,225 into the reserve for replacements account as required by the regulatory agreement. Statement of Condition - The Organization failed to make the required reserve for replacements deposits in the current fiscal year. Cause - The Organization 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 $200 Auditor Noncompliance Code - N - Reserve for replacements deposits Context - An increase in the required deposits was approved effective September 2022; however, the monthly amount deposited was not updated to reflect this increase. 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 required reserve for replacements deposits in the current fiscal year. Response Indicator - Agree Response - Management detected the error and deposited the underfunded amount in March 2023. Management acknowledges noncompliance in the current fiscal year and has taken measures to improve internal controls over compliance.