Assistance Listing (Federal award identification number and year): LIHPRHA Capital Grant, Assistance Listing No. 14.122, 122-44641 and 1996 Auditor non-compliance code: N – Reserve for Replacement Deposits Finding resolution status: In process Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $12,747 Statement of condition 2024-001: During the year ended June 30, 2024, the Corporation did not make the required deposits to the reserve for replacements in the amount of $12,747. Criteria: Pursuant to the HUD regulatory agreement, the Corporation is required to make monthly deposits to the reserve for replacements in the required amount of $4,249. Effect: The Corporation is not in compliance with the HUD regulatory agreement and the reserve for replacements is underfunded. Cause: The Corporation deposited the funds equal to $8,498 into the residual receipts account instead of the reserve for replacement account. A transfer was not completed to correct the error in deposit. The remaining $4,249 was not deposited due to limited available cash. Recommendation: Management should request approval from HUD for a transfer from the residual receipt account to the reserve for replacement account in the amount of $8,498 to correct the error. Management should also make the additional deposit of $4,249 or request a suspension of deposits from HUD. Management's response: Management concurs with the finding and agrees with the auditor's recommendation. Management has requested approval from HUD to transfer the funds to the reserve for replacement account and will make the additional deposit during the year ended June 30, 2025.
Assistance Listing (Federal award identification number and year): LIHPRHA Capital Grant, Assistance Listing No. 14.122, 122-44641 and 1996 Auditor non-compliance code: Z - Other Finding resolution status: In process Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of condition 2024-002: The Corporation has not submitted audited financial statements to the Federal Audit Clearinghouse after the receipt of the auditor's reports. Criteria: Pursuant to 2 CFR 200.512(a), the Corporation is required to electronically submit audited financial statements to the Federal Audit Clearinghouse within the earlier of 30 calendar days after receipt of the auditor's report or nine months after the end of the audit period. Effect: The Corporation is not in compliance with the federal reporting requirements. Cause: The requirement was not communicated to management by previous auditors. Recommendation: The Corporation should submit audited financial statements to the Federal Audit Clearinghouse within the time frames required. Management's response: Management concurs with the finding and agrees with the auditor's recommendation. The audited financial statements will be submitted to the Federal Audit Clearinghouse on a go forward basis.
Assistance Listing (Federal award identification number and year): LIHPRHA Capital Grant, Assistance Listing No. 14.122, 122-44641 and 1996 Auditor non-compliance code: Z - Other Finding resolution status: Resolved Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of condition 2024-003: The Corporation did not furnish HUD with a complete annual financial report within ninety (90) days following the year ended June 30, 2024. Criteria: Pursuant to the Regulatory Agreement, within 90 days, or such a period established in writing by HUD, following the fiscal year end, the Corporation is required to furnish to HUD a complete annual financial report based upon the examination of the books and records of the Corporation prepared in accordance with GAAP and with the requirements of HUD, and audited in accordance with Generally Accepted Auditing Standards and Government Auditing Standards. Effect: The Corporation is not in compliance with the Regulatory Agreement. Cause: There was a change in auditors in August 2024 resulting in an owner certified submission to extend the deadline to March 31, 2025. Due to the transition, there were delays in obtaining all of the information required to complete the audit. Recommendation: The Corporation should ensure the annual financial report is filed within 90 days of year end. Management's response: Management concurs with the finding and recommendation. The audited financial statements have been submitted to HUD. No further action is required.