FAC Explorer

Finding 1166146 (2025-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2025-12-22
Audit: 377051
Organization: Coronado Gardens Consumer Housing Cooperative (MI)
Auditor: COMER NOWLING AND ASSOCIATES PC

AI Summary

  • Answer: The Cooperative withdrew more than 20% from the general operating reserve without HUD approval.
  • Trend: This indicates a pattern of non-compliance with HUD regulations regarding reserve withdrawals.
  • List: Recommend immediate review of withdrawal policies and seek HUD approval for future transactions exceeding the limit.

Finding Text

The Cooperative did not obtain approval from HUD for withdrawals from the general operating reserve in excess of 20% of the prior year’s ending balance.

Corrective Action Plan

Management is aware of the approval requirement and will obtain approval for withdrawals from the general operating reserve when total annual withdrawals exceed 20% of the prior year’s ending balance.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1166147 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.155 MORTGAGE INSURANCE FOR THE PURCHASE OR REFINANCING OF EXISTING MULTIFAMILY HOUSING PROJECTS $564,051
14.103 INTEREST REDUCTION PAYMENTS_RENTAL AND COOPERATIVE HOUSING FOR LOWER INCOME FAMILIES $332,212
14.195 SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM $297,328