Finding 1205687 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-04-01

AI Summary

  • Core Issue: Funds were improperly withdrawn from residual receipts, violating HUD guidelines.
  • Impacted Requirements: Compliance with HUD regulations regarding withdrawals from the replacement reserve.
  • Recommended Follow-Up: Implement procedures to ensure all withdrawals are HUD-approved and taken from the correct account.

Finding Text

S3800-010 Finding Reference Number 2025-001 S3800-011 Title and Assistance Listing Number of Federal Program U.S. Department of Housing and Urban Home Investment Partnership Program, 14.239 S3800-015 Type of Finding Federal Award Finding S3800-016 Finding Resolution Status In Process S3800-017 Information on Universe Population Size N/A S3800-018 Sample Size Information N/A S3800-019 Identification of Repeat Finding and Reference Number No S3800-020 Criteria The organization must comply with HUD guidelines regarding residual receipts withdrawals. S3800-030 Statement of Condition Funds were withdrawn from residual receipts that were authorized by HUD to be withdrawn from the replacement reserve. S3800-032 Cause Clerical error S3800-033 Effect or Potential Effect The project was not in compliance with HUD guidelines for residual receipts withdrawals. S3800-035 Auditor Non-Compliance Code S3800-040 Questioned Costs $29,370 S3800-045 Reporting Views of Responsible Officials The Organization must comply with HUD guidelines regarding residual receipts withdrawals. S3800-037 FHA/Contract Number 12735486 S3800-038 Questioned Costs $29,370 S3800-080 Recommendation Management should have procedures in place to ensure HUD approved withdrawals are taken from the approved account. S3800-090 Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Funds will be withdrawn from replacement reserve and deposited to the residual receipts account. S3800-130 Response Indicator Agree S3800-140 Completion Date 03/31/2026 S3800-150 Response Management agrees with the finding, and funds will be moved from the replacement reserve to the residual receipts account S3800-160 Contact Person First Name Thomas S3800-170 Contact Person Middle Initial E. S3800-180 Contact Person Last Name Anderson

Corrective Action Plan

Management agrees with the finding and funds will be moved from replacement reserve to residual receipts account.

Categories

HUD Housing Programs Cash Management Reporting

Programs in Audit

ALN Program Name Expenditures
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $2.56M
14.134 MORTGAGE INSURANCE RENTAL HOUSING $2.51M