Finding Text
Federal Agency: U.S. Department of Housing and Urban Development Program Name: Section 811 – New Construction – Capital Advance Program – Supportive Housing for Persons with Disabilities Federal Assistance Listing Number: 14.181 Type of Finding: Other Matters Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: HUD regulations and the regulatory agreement requires HUD authorization for excess deposits outside of the required monthly deposits. Condition: The Corporation did not receive authorization for an additional deposit made during the year ended June 30, 2025. Questioned Costs: None Context: The Corporation did not receive authorization for an additional deposit made during the year ended June 30, 2025. Cause: Management oversight. Effect: The Corporation is not in compliance with their regulatory agreement with HUD. Repeat Finding: No. Recommendation: Management should receive proper authorization from HUD prior to making additional deposits into the reserve account. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the finding. Management will discuss the additional deposit with HUD.