Finding 1169725 (2025-003)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2025
Accepted
2026-01-20

AI Summary

  • Core Issue: The replacement reserve cash balance was underfunded by $88 as of September 30, 2025.
  • Impacted Requirements: The management company did not make the correct monthly deposit into the account.
  • Recommended Follow-Up: Ensure the Project deposits the $88 into the replacement reserve account as agreed.

Finding Text

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2025-003: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 Condition: The Project's replacement reserve cash balance was underfunded at September 30, 2025. Criteria: The management company failed to make the correct monthly deposit amount into the account. Effect: The replacement reserve cash balance was $88 less than it should be at September 30, 2025. Context: Activity in the replacement reserve account for the year ended September 30, 2025 was tested. No sample was tested. Questioned Costs - $88; Cause: The management company failed to increase the monthly deposit amount during the correct month. Recommendation: The Project should deposit $88 into the replacement reserve account. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. Management will deposit $88 into the replacement reserve account. Total-Department of Housing and Urban Development - $88; Non-compliance code: N

Corrective Action Plan

FINDING 2025-003: SECTION 202, ASSISTANCE LISTING NUMBER 14.157 Condition: The Project's replacement reserve cash balance was underfunded at September 30, 2025. Recommendation: The Project should deposit $88 into the replacement reserve account. Action Taken: The Project agrees with the finding. Management deposited $88 to the replacement reserve account in November 2025. If the Department of Housing and Urban Development has questions regarding these plans, please call Mike Thomas at 651-639-9799.

Categories

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Other Findings in this Audit

  • 1169723 2025-001
    Material Weakness Repeat
  • 1169724 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $500,000
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $241,406