Finding Text
S3800-010: Finding Reference Number 2025-002 (Material Weakness) S3800-011: Program Information Federal Program: Mortgage Insurance for Rental and Cooperative Housing Section 221(d)(4) Federal Agency: U.S. Department of Housing and Urban Development (HUD) Assistance Listing #: 14.135 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: N – Special Tests and Provisions S3800-015: Type of Finding Financial Statement and Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size N/A S3800-018: Sample Size Information N/A S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria In accordance with the Committee of Sponsoring Organizations of the Treadway Commission’s “COSO” Internal Control Framework, Principle 2 – Exercise Oversight Responsibility, the Organization is required to have an oversight body that should oversee the entity’s internal control system. S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended February 28, 2025 financial statement and federal award program, we noted that the Organization’s board of directors did not meet. Minutes from CHM’s (management agent) board of directors meetings were provided, but no specific discussion of auditee was reflected in the minutes. S3800-032: Cause The Organization does not have / follow a policy regarding board meetings. S3800-033: Effect or Potential Effect Due to the absence of board oversight, accurate and reliable financial reporting, safeguarding of assets, and fraud prevention are not being monitored. S3800-035: Auditor Non-Compliance Code: Z - Other S3800-040: Questioned Costs None S3800-045: Reporting Views of Responsible Officials Management agrees with the finding. S3800-050: Context The board of directors did not meet during the fiscal year. S3800-080: Recommendation The Board of Directors should conduct board meetings as frequently as needed to allow them to fulfill their responsibilities and/or obtain counsel if meetings cannot be scheduled/held. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Auditee agrees with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date August 31, 2025 S3800-150: Response Pending