Finding 1215152 (2025-013)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-05-20

AI Summary

  • Issue: The Project lacked necessary flood insurance coverage during the audit period.
  • Impact: This violates HUD regulations and exposes the Project to uninsured risks.
  • Action: Establish procedures to consistently monitor and maintain required insurance coverage.

Finding Text

Condition: The Project did not maintain required flood insurance coverage during the audit period. Criteria: HUD regulations require continuous insurance coverage for insured properties. Cause: Failure to monitor insurance policy status. Effect: Exposure to uninsured risk and noncompliance with HUD requirements. Recommendation: Implement procedures to ensure required insurance coverage is maintained at all times.

Corrective Action Plan

Management will implement an insurance compliance calendar with renewal tracking, assign responsibility for monitoring coverage, establish a funding mechanism for premiums, and retain documentation of policy renewals, payments, and annual flood-zone confirmations to ensure continuous coverage.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1215148 2025-009
    Material Weakness Repeat
  • 1215149 2025-010
    Material Weakness Repeat
  • 1215150 2025-011
    Material Weakness Repeat
  • 1215151 2025-012
    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