Finding 11798 (2023-002)

-
Requirement
B
Questioned Costs
$1
Year
2023
Accepted
2024-02-05

AI Summary

  • Core Issue: The Project's replacement reserve was underfunded by $940 due to duplicate withdrawals for the same invoice.
  • Impacted Requirements: Compliance with Section 223(f) and proper management of the replacement reserve funds.
  • Recommended Follow-Up: Ensure the Project maintains accurate records to prevent duplicate withdrawals and monitor the replacement reserve balance regularly.

Finding Text

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT FINDING 2023-002: SECTION 223(f), ASSISTANCE LISTING NUMBER 14.155 Condition: The Project's replacement reserve cash balance was underfunded at September 30, 2023. Criteria: The Project made two replacement reserve withdrawals for the same invoice. Effect: The replacement reserve cash balance was $940 less than it should be at September 30, 2023. Context: Activity in the replacement reserve account for the year ended September 30, 2023 was tested. No sample was tested. Questioned costs - $940, Cause: The Project mistakenly made two replacement reserve withdrawals for the same invoice. Recommendation: The Project should repay the amount improperly withdrawn from the replacement reserve account. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. Management deposited $940 into the replacement reserve account in November 2023. Questioned Costs - Department of Housing and Urban Development, Non-compliance code - A

Corrective Action Plan

FINDING 2023-002: SECTION 223(f), ASSISTANCE LISTING NUMBER 14.155 Condition: The Project made two replacement reserve withdrawals for the same invoice. Recommendation: The Project should repay the amount improperly withdrawn from the replacement reserve account. Action Taken: The Project agrees with the finding. Management deposited $940 into the replacement reserve account in November 2023. If the Department of Housing and Urban Development has questions regarding these plans, please call JoAnn Rademacher at 651-639-9799.

Categories

Questioned Costs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $1.38M
14.195 Section 8 Housing Assistance Payments Program $201,350