Finding 1162010 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2025
Accepted
2025-11-06
Audit: 371873
Organization: Eastside Home Association (WA)

AI Summary

  • Core Issue: The organization failed to meet HUD guidelines for residual receipts deposits due to a clerical error.
  • Impacted Requirements: Compliance with HUD guidelines regarding the required deposit amounts for residual receipts.
  • Recommended Follow-Up: Management should implement procedures to ensure accurate deposits moving forward, with a completion target of June 30, 2025.

Finding Text

S3800-010 Finding Reference Number 2025-001 S3800-011 Title and Assistance Listing Number of Federal Program U.S. Department of Housing and Urban Development Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects, 14.155 S3800-015 Type of Finding Federal Award Finding S3800-016 Finding Resolution Status In Process S3800-017 Information on Universe Population Size N/A S3800-018 Sample Size Information N/A S3800-019 Identification of Repeat Finding and Reference Number No S3800-020 Criteria The Organization must comply with HUD guidelines regarding residual receipts deposits. S3800-030 Statement of Condition Prior year residual receipts deposit was below the required amount. S3800-032 Cause Clerical error S3800-033 Effect or Potential Effect The Organization was not in compliance with HUD guidelines for residual receipts deposit amounts. S3800-035 Auditor Non-Compliance Code S3800-040 Questioned Costs $171,729 S3800-045 Reporting Views of Responsible Officials The Organization must comply with HUD guidelines regarding residual receipts deposits. S3800-037 FHA/Contract Number 12711240 S3800-038 Questioned Costs $171,729 S3800-080 Recommendation Management should have procedures in place to ensure deposits to residual receipts in the appropriate amount. S3800-090 Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Funds will be included in the residual receipts deposit for the current year. S3800-130 Response Indicator Agree S3800-140 Completion Date 6/30/2025 S3800-150 Response Management agrees with the findings, and funds will be included in current year surplus cash deposit calculations. S3800-160 Contact Person First Name Thomas S3800-170 Contact Person Middle Initial E. S3800-180 Contact Person Last Name Anderson

Corrective Action Plan

Management agrees with the finding and funds will be included in current year's residual receipts deposit.

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 $3.33M
14.195 SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM $1.57M