Finding 1140912 (2023-001)

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Requirement
P
Questioned Costs
-
Year
2023
Accepted
2025-06-11

AI Summary

  • Issue: The board of directors is not meeting regularly, which affects their ability to oversee the Project effectively.
  • Impacted Requirement: Regular board meetings are essential for fulfilling fiduciary duties and governance.
  • Follow-Up: Ensure the board meets at least twice a year and schedules additional meetings as necessary.

Finding Text

2023-001 BOARD OVERSIGHT Criteria: Board of directors should convene on a regular basis to fulfill their fiduciary duties and provide governance to the Project. Board of directors should be active and oversee responsibilities of the Project. Condition: During our audit testing, we noted that the board of directors were not holding board meetings regularly. Cause: Board of directors are not meeting on a regular basis. Effect: Board of directors may not be providing sufficient oversight of the management company and the Project’s financial transactions. Questioned Costs: N/A Recommendation: We recommend that the board of directors meet on a regular basis to fulfill their fiduciary duties. Management’s Views and Corrective Action Plan: The board has agreed to a minimum of two board meetings each year and any additional meetings on an as needed basis.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.427 Rural Rental Assistance Payments $110,979
10.415 Rural Rental Housing Loans $5,097