Finding Text
Federal Agency: U.S. Department of Housing and Urban Development (HUD)
Federal Program Name: Supportive Housing for Persons with Disabilities (Section 811)
Assistance Listing Number: 14.181
Type of Finding: Significant Deficiency in Internal Control over Compliance; Compliance
Criteria or Specific Requirement: Control over reserve account properly implemented and enforced.
Condition: During the 2025 audit, we noted that the Project had not timely reviewed the bank reconciliations for July 2024
.
Questioned Costs: None.
Context: Through audit compliance testing procedures, three months of bank reconciliations were tested and identified that the July 2024 bank reconciliations were not properly reviewed.
Cause: Due to changes in management certain controls were not timely completed.
Effect: The Project did not properly review bank reconciliations.
Repeat Finding: None.
Recommendation: We recommend the Project review bank reconciliations timely and formerly.
Views of Responsible Officials: There is no disagreement with the audit finding.