Finding 1158056 (2024-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
$1
Year
2024
Accepted
2025-09-30

AI Summary

  • Core Issue: The security deposit liability account was underfunded by $11,936 as of December 31, 2024.
  • Impacted Requirements: HUD mandates that the security deposit cash account must match or exceed the security deposit liability.
  • Recommended Follow-Up: Management should transfer funds to the security deposit cash account to address the shortfall.

Finding Text

Finding No. 2024-001- Federal Award Finding Statement of Condition: Security deposit liability account was underfunded at December 31, 2024. Criteria: HUD requires the security deposit cash account to be maintained in an amount equal to or greater than the security deposit liability on hand. The security deposit account was underfunded by $11,936 at December 31, 2024. Effect: Security deposit liability account was underfunded. Cause: Funds from the security deposit cash account were transferred to the operating account to assist project cash flow in a prior year. Recommendation: Management should transfer funds to the security deposit cash account to cover the shortfall. Management Response: Management agrees with the finding and will transfer the required funds to the security deposit cash account when available.

Corrective Action Plan

Auditee: CAAP Housing, Inc. HUD Project Number: 073-11685 Audit Firm: Agresta, Storms & O’Leary PC Audit Period Ended December 31, 2024 Corrective Action Plan Prepared by: Name: Cynthia Norris Position: Housing Asset and Tenant Service Director (Community Action of Greater Indianapolis, Inc.) A. Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Finding No. 2024-001 A. Comments on the Finding and Each Recommendation: Management agrees with the finding that the security deposit cash account was underfunded at December 31, 2024. B. Action Taken or Planned on the Finding: Management will transfer the required funds to the security deposit cash account when the funds are available. B. Status of Corrective Actions on Findings Reported in the Prior Audit Schedule of Findings, Questioned Costs, and Recommendations See Finding No. 2024-001 for status of Finding No. 2023-001. Respectfully Submitted, Terrence White Executive Director/CEO Community Action of Greater Indianapolis, Inc.

Categories

Questioned Costs HUD Housing Programs

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $1.75M
14.195 Project-Based Rental Assistance (pbra) $233,785