Finding 1205656 (2025-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-04-01
Audit: 397352
Organization: Independence Heights INC (TX)

AI Summary

  • Core Issue: The Project missed one monthly deposit to the reserve for replacement in 2025.
  • Impacted Requirements: Compliance with federal program deposit requirements for the Supportive Housing for the Elderly.
  • Recommended Follow-Up: Ensure all required monthly deposits are made moving forward to avoid future shortfalls.

Finding Text

Finding reference number: 2025-002 - Title and AL Number of Federal Program: Supportive Housing for the Elderly - Section 202 Capital Advance (AL 14.157) - Type of finding: Compliance - Resolution Status: In process - Population size: N/A - Sample size: N/A - Repeat finding: No - Criteria: The Project missed one monthly deposit to the reserve for replacement in 2025. - Condition: During the year ended December 31, 2025, the eleven of the twelve required deposits to the reserve for replacement were made. - Cause: Management oversight - Effect: The Project will have to make an additional deposit of $1,317 in 2026, to cover the shortfall. - Noncompliance code: N - Failure to make required reserve for replacements deposits. - Questioned costs: N/A - Reporting views of officials: Auditee agrees with the finding. - Context: This was noted while performing audit procedures on the reserve for replacement. - Recommendation: The Project should ensure that the required monthly deposits are made to the reserve for replacement. - Auditors' summary of auditee's comments: They are in agreement. - Completion date: 12/31/2026 - Response: Management agrees with the findings and will make the additional deposit of $1,317 to the reserve for replacement account.

Corrective Action Plan

Audit Finding 2025-0002 - The Project missed one monthly deposit to the reserve for replacement in 2025. - Management response: The Project will make the additional deposit of $1,317 on May 3, 2026.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1205655 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $197,520