Finding Text
Finding 2024-001: Considered a material weakness in internal controls over major program compliance.
Major Program ALN: 14.155
Major Program Name: Mortgage Insurance for the Purchase of Refinancing of Multifamily Housing Projects
Criteria: According to 2 CFR Part 200 (Uniform Guidance), specifically 2 CFR §200.303, non-federal entities are
required to establish and maintain effective internal control over federal awards. This includes written policies
and procedures to ensure compliance with federal statutes, regulations, and the terms and conditions of the
federal award.
Condition: During our review of Caspian Housing Corporation’s administration of its major federal program,
we noted that the entity lacks formal, written policies and procedures governing key compliance areas. The
absence of such written policies and procedures increases the risk of noncompliance with HUD program
requirements and may result in inefficiencies, errors, or potential misuse of federal funds.
Cause: Caspian Housing Corporation has not developed or implemented written policies and procedures in
accordance with federal requirements.
Effect: Without documented policies and procedures, Caspian Housing Corporation is at risk of noncompliance
with federal requirements, which could lead to financial penalties, questioned costs, or potential loss of federal
funding.
Recommendation: We recommend that Caspian Housing Corporation develop and implement comprehensive
written policies and procedures that align with Uniform Guidance requirements.
Management Response: Management is in agreement with the recommendations and will work to implement
the required policies and procedures in accordance with Uniform Guidance requirements during 2025.
Auditor Non-compliance Code: S - internal control deficiencies