FAC Explorer

Finding 1147137 (2023-005)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2025-07-08
Audit: 361711
Organization: Redi Corporation and Affiliates (CO)
Auditor: Dauby O'Connor & Zaleski LLC

AI Summary

  • Core Issue: The Partnership's residual receipts accounts were not in interest-bearing accounts, violating the Regulatory Agreement.
  • Impacted Requirements: Compliance with the Regulatory Agreement is essential for proper fund management.
  • Recommended Follow-Up: Transfer the residual receipts account to an interest-bearing account by December 12, 2023.

Finding Text

Finding reference number: #2023-005 Assistance Listing title and number (Federal award identification number and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, Assistance Listing No. 14.155 Identification numbers Property Year of award 101-11323 1221 Pearl 2022 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. Finding reference number: #2023-005 (continued) Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Repeat Finding: Yes Statement of Condition #2023-005: At March 31, 2023 the Partnership's residual receipts accounts were not invested in interest bearing accounts. Criteria: The Regulatory Agreement requires that the residual receipts be invested in an interest bearing account. Effect: The Partnership is not in compliance with the terms of the Regulatory Agreement. Cause: The Partnership did not open an interest bearing account when it opened the residual receipts cash account. Recommendation: The Agent should transfer the residual receipts account to an interest bearing account. Completion Date: December 12, 2023 Management Response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Partnership will transfer the residual receipts account to an interest bearing account.

Categories

HUD Housing Programs Special Tests & Provisions Procurement, Suspension & Debarment Subrecipient Monitoring Cash Management

Other Findings in this Audit

  • 570685 2023-001
    Material Weakness Repeat
  • 570686 2023-002
    Material Weakness
  • 570687 2023-003
    Significant Deficiency Repeat
  • 570688 2023-006
    Material Weakness
  • 570689 2023-007
    Significant Deficiency
  • 570690 2023-001
    Material Weakness Repeat
  • 570691 2023-002
    Material Weakness
  • 570692 2023-006
    Material Weakness
  • 570693 2023-007
    Significant Deficiency
  • 570694 2023-004
    Material Weakness
  • 570695 2023-005
    Significant Deficiency Repeat
  • 570696 2023-006
    Material Weakness
  • 570697 2023-007
    Significant Deficiency
  • 570698 2023-008
    Significant Deficiency
  • 570699 2023-006
    Material Weakness
  • 570700 2023-007
    Significant Deficiency
  • 570701 2023-006
    Material Weakness
  • 570702 2023-007
    Significant Deficiency
  • 570703 2023-006
    Material Weakness
  • 570704 2023-007
    Significant Deficiency
  • 1147127 2023-001
    Material Weakness Repeat
  • 1147128 2023-002
    Material Weakness
  • 1147129 2023-003
    Significant Deficiency Repeat
  • 1147130 2023-006
    Material Weakness
  • 1147131 2023-007
    Significant Deficiency
  • 1147132 2023-001
    Material Weakness Repeat
  • 1147133 2023-002
    Material Weakness
  • 1147134 2023-006
    Material Weakness
  • 1147135 2023-007
    Significant Deficiency
  • 1147136 2023-004
    Material Weakness
  • 1147138 2023-006
    Material Weakness
  • 1147139 2023-007
    Significant Deficiency
  • 1147140 2023-008
    Significant Deficiency
  • 1147141 2023-006
    Material Weakness
  • 1147142 2023-007
    Significant Deficiency
  • 1147143 2023-006
    Material Weakness
  • 1147144 2023-007
    Significant Deficiency
  • 1147145 2023-006
    Material Weakness
  • 1147146 2023-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $1.94M
14.239 Home Investment Partnerships Program $592,026
14.195 Section 8 Housing Assistance Payments Program $66,763
14.191 Multifamily Housing Service Coordinators $58,741