FAC Explorer

Finding 1055607 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2024-07-23
Audit: 315693
Organization: Little Earth of United Tribes Housing Corporation (MN)
Auditor: Mahoney Ulbrich Christiansen & Russ PA

AI Summary

  • Core Issue: The Corporation failed to make the required 12 monthly deposits into the replacement reserve, completing only 10 deposits in 2022.
  • Impacted Requirements: This shortfall results in an underfunding of $35,234, violating the agreement with HUD.
  • Recommended Follow-Up: Ensure the Corporation deposits the missing $35,234 into the replacement reserve in 2023 as promised.

Finding Text

Finding 2022-001 - Replacement Reserve Deposits Assistance Listing Number 14.195 - Section 8 Housing Assistance Payments Program Federal Award Finding Criteria - Pursuant to the Corporation’s Regulatory Agreement with the Department of Housing and Urban Development (HUD), 12 monthly deposits of $17,617 are required into the replacement reserve (annually $211,404). Condition - The Corporation only made 10 monthly deposits ($176,170) into the replacement reserve in 2022. Effect - The replacement reserve is underfunded by $35,234. Cause - Monthly invoices for the replacement reserve deposits were not received. Recommendation - The Corporation should make an additional deposit to the replacement reserve of $35,234 in 2023. Auditee’s comments and response - Management will make an additional deposit to the replacement reserve of $35,234 in 2023. Status - Unresolved

Categories

HUD Housing Programs

Other Findings in this Audit

  • 479165 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.195 Lower Income Housing Assistance Program - Section 8 Moderate Rehabilitation $3.03M
14.239 Home Investment Partnerships Program $500,000
14.244 Renewal Community and Empowerment Zone Programs $500,000
14.218 Community Development Block Grants/entitlement Grants $350,000