Finding Text
Finding Reference Number: 2025-002 Assist Listing Title: Supportive Housing for the Elderly Program Assistance Listing Number: 14.157 Federal Agency: U.S. Department of Housing and Urban Development (HUD) Federal Award Identification Number (FAIN): Federal Award Year: 2025 Pass-Through Entity: N/A Criteria: The Corporation must provide insurance coverage for real property and equipment acquired or improved with Federal funds, as required by the Federal award. Condition: For the year ended September 30, 2025, the Corporation did not maintain the required amount of property insurance coverage for certain portions of the year. Cause: The bill was not paid, which resulted in cancellation of the policy. Effect or Potential Effect: Noncompliance with HUD regulations and 2 CFR 200.310, creating risk of inadequate protection for federally funded property. Questioned Costs: $- Perspective Information: This issue was also noted in the prior audit and remains unresolved, indicating a potential systemic condition or that prior corrective actions were not fully effective. Continued monitoring and additional corrective measures are necessary to prevent recurrence. Repeat Finding: Yes Recommendation: Management should ensure that an insurance policy is in place and that coverage amounts meet HUD requirements consistently throughout the year. Views of Responsible Officials: Management agrees with the finding and has reinstated the insurance policy with required coverage amounts. Auditor's Summary of Auditee's Comments: Management reinstated the insurance policy as of December 10, 2024, and implemented controls to prevent future lapses. Response Indicator: Agree Completion Date: 12/10/2024 Response: Management has obtained an insurance policy with sufficient coverage and has increased controls around payment of premiums to ensure there are no future lapses.