Finding 1162123 (2024-004)

Finding Number 2024-004 In Process Federal Agency U.S. Dept. of Housing and Urban Development Federal Program Name Section 202 Capital Advance Assistance Listing Number 14.157 Federal Award Identification Number and Year MN46S931002 - 1993 Award Period 2024 Compliance Requirement Affected N - Reserve for Replacements Deposits Type of Finding Significant Deficiency in Compliance and Internal Control over Major Federal Program Criteria Management is responsible for maintaining required monthly deposits into the Replacement Reserve account in accordance with the form HUD-9250 Condition The project only made eleven of the 12 required deposits for 2024. Questioned Costs $11,422 Cause The October deposit was missed. Effect The Replacement Reserve was underfunded by one deposit during 2024. Repeat Finding No Recommendation The Project should establish and follow a consistent monthly review process to ensure all deposits are made on a timely basis. Views of Responsible Officials and Planned Corrective Actions There is no disagreement with the audit finding. Management Response Management continues to review and establish processes related to review and approval to ensure monthly replacement reserve deposits are made.