Finding Text
Finding Reference Number: 2025-02 Title and AL Number of Federal Program: Section 202 Capital Advance and Project Rental Assistance 14.157 Type of Finding: Federal Award Finding Finding Resolution Status: Resolved Information on Universe Population Size: n/a Sample Size Information: n/a Identification of Repeat Finding and Finding Reference Number: n/a Criteria: The Corporation is required to have property insurance sufficient to cover replacement of the building per the HUD Handbook. Statement of Condition: For the year ended September 30, 2025, the Corporation did not have 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, Chapter 21 Section 2. Auditor Non-Compliance Code: Z - Other Questioned Costs: $- Reportable Views of Responsible Officials: Management is in agreement with the finding and has reinstated the insurance policy with required coverage amounts. Context: n/a Recommendation: Management should ensure insurance policy is in place and that coverage amounts meet HUD requirements. Auditors’ Summary of the Auditee’s Comments on the Findings and Recommendations: Management has reinstated the insurance policy as of December 10, 2024. Response Indicator: Agree Completion Date: 12/10/2024 Response: Management has obtained an insurance policy with sufficient coverage and has increased controls around payments of premiums to ensure there are no future lapses.