Finding Text
Finding reference number: #2023-001
Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195
Identification numbers Property Year of award Questioned costs
CO99T851006 REDI IV 2017 $3,490
CO99T841007 REDI III 2017 $7,350
Auditor non-compliance code: N - Special Tests and Provisions
Finding resolution status: Cleared
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $10,840
Repeat Finding: Yes
Statement of condition #2023-001 (Assistance Listing No. 14.195): At March 31, 2023, the Corporation's reserve for replacement accounts were underfunded.
Criteria: The HAP Contracts require monthly deposits into separate reserve for replacement accounts.
Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts. At March 31, 2023, the reserve for replacements accounts are underfunded $10,840.
Cause: The Corporation did not make the required monthly deposits to the various reserve for replacements accounts.
Recommendation: The Agent should transfer $10,840 from the respective operating accounts to the reserve for replacements accounts. The Agent should make all required deposits to the reserve for replacements accounts.
Completion date: October 19, 2023 (REDI IV), January 11, 2024 (REDI III)
Management response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation made the $3,490 required transfer for REDI IV and the $7,350 deposit to REDI III.