FAC Explorer

Finding 1215150 (2025-011)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-05-20
Audit: 401818
Organization: Friends Alliance Housing Ii,inc D/b/a Friendship House (LA)
Auditor: TIMOTHY PRIEST

AI Summary

  • Answer: The Project missed $3,600 in required deposits to the Reserve for Replacement account.
  • Trend: This oversight indicates a pattern of inadequate monitoring of required deposits.
  • List: Implement monitoring controls to ensure timely compliance with HUD deposit requirements.

Finding Text

Condition: The Project did not make required deposits into the Reserve for Replacement account totaling $3,600. Criteria: HUD Regulatory Agreement requires periodic deposits into the reserve account. Cause: Oversight in monitoring required deposits. Effect: Noncompliance with HUD reserve requirements. Recommendation: Establish monitoring controls to ensure all required reserve deposits are made timely.

Corrective Action Plan

Management will implement a monthly reserve funding checklist, automate recurring reserve transfers where feasible, and require Board review of reserve account activity. Reserve deposits will be supported by bank statements and documented through signed monthly checklists, with exceptions documented and remediated.

Categories

Subrecipient Monitoring HUD Housing Programs Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1215148 2025-009
    Material Weakness Repeat
  • 1215149 2025-010
    Material Weakness Repeat
  • 1215151 2025-012
    Material Weakness Repeat
  • 1215152 2025-013
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.181 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES $1.28M
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $90,551