Finding Text
Finding Reference Number: 2024-01
Title and AL Number of Federal Program: Section 202 Capital Advance and Project Rental Assistance 14.157
Type of Finding: Federal Award Finding
Finding Resolution Status: Resolved
Information on Universe Population Size: n/a
Sample Size Information: n/a
Identification of Repeat Finding and Finding Reference Number: n/a
Criteria: The Corporation is required to have property insurance sufficient to cover replacement of the building per the HUD
Handbook.
Statement of Condition: For the year ended September 30, 2024, the Corporation did not have the required amount of property
insurance coverage for certain portions of the year.
Cause: The bill was not paid which resulted in cancellation of the policy.
Effect or Potential Effect: Noncompliance with HUD regulations, Chapter 21 Section 2.
Auditor Non-Compliance Code: Z - Other
Questioned Costs: $-
Reportable Views of Responsible Officials: Management is in agreement with the finding and has reinstated the insurance
policy with required coverage amounts.
Context: n/a
Recommendation: Management should ensure insurance policy is in place and that coverage amounts meet HUD
requirements.
Auditors’ Summary of the Auditee’s Comments on the Findings and Recommendations: Management has reinstated the
insurance policy as of December 10, 2024.
Response Indicator: Agree
Completion Date: 9/30/2024
Response: Management has obtained an insurance policy with sufficient coverage and has increased controls around payments
of premiums to ensure there are no future lapses.