Finding 1156392 (2024-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2024
Accepted
2025-09-29

AI Summary

  • Core Issue: The Corporation failed to make required deposits to the reserve for replacements fund, totaling $30,975.
  • Impacted Requirements: This non-compliance violates the Regulatory Agreement with HUD.
  • Recommended Follow-Up: The Corporation should promptly deposit the $30,975 to comply with the agreement.

Finding Text

Finding reference number: #2024-001 CFDA title and number (federal award identification number and year): Mortgage Insurance for Rental Housing, CFDA No. 14.134 (Project identification number 073-35311, 2007) Auditor non-compliance code: N – Special Tests and Provisions Finding resolution status: Outstanding Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size is not applicable to the finding. Statistically valid sample: Not applicable Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: Not applicable Questioned costs: $30,975 Statement of condition of #2024-001 (CFDA No. 14.134): The Corporation did not make all required reserve for replacements deposits during the year ended December 31, 2024. Criteria: The Regulatory Agreement requires the Corporation to make monthly deposits/payments to a reserve for replacements fund under the control of HUD. Effect or potential effect: The Corporation is not in compliance with the Regulatory Agreement. Cause: The Corporation has not made all required reserve for replacements payments. Recommendation: The Corporation should make a deposit of $30,975 to the reserve for replacements fund. Completion date: Outstanding Reporting response: The Corporation concurs with the recommendation and will make the deposit to fully fund the reserve for replacements fund.

Corrective Action Plan

Finding 2024-001: The Corporation did not make all required reserve for replacements deposits during the year ended December 31, 2024. Comments on the Finding and Each Recommendation: The Corporation should make a deposit of $30,975 to the reserve for replacements fund. Action(s) Taken or Planned on the Finding: The Corporation concurs with the recommendation and will make the deposit to fully fund the reserve for replacements fund.

Categories

Questioned Costs HUD Housing Programs Special Tests & Provisions Subrecipient Monitoring Reporting

Programs in Audit

ALN Program Name Expenditures
14.134 Mortgage Insurance Rental Housing $1.14M
14.195 Project-Based Rental Assistance (pbra) $324,423