Finding Text
Finding Reference Number: 2023-03
Title and Federal Assistance Listing Number of Federal Program:
Section 202 Capital Advance and PRAC, 14.157
Type of Finding: Federal Award Finding
Finding Resolution Status: Unresolved
Information on Universe Population Size: n/a
Sample Size Information: n/a
Identification of Repeat Finding and Finding Reference Number: Not applicable
Criteria: The HUD Handbook states that management agents are required to have fidelity bond insurance of two
months gross rent or $50,000, whichever is greater.
Statement of Condition: The fidelity bond policy lapsed during the year.
Cause: The renewal of the policy was not completed in a timely manner resulting in a lapse of coverage.
Effect or Potential Effect: The Project is noncompliant with the HUD regulatory agreement.
Auditor Non-Compliance Code: Z
Questioned Costs: $-
Reportable Views of Responsible Officials: Management is in agreement with the finding and will adhere to the
requirements set forth in the HUD Handbook going forward and reinstate the fidelity bond insurance policy in
accordance with HUD regulations.
Context: Not applicable
Recommendation: The policy should be renewed in a timely manner to ensure no lapses in coverage.
Auditors’ Summary of the Auditee’s Comments on the Findings and Recommendations: Agree with management's
assessment.
Response Indicator: Agree
Completion Date: 12/31/2024