Finding Text
Finding Reference number: #2025-001 Assistance Listing title and number (federal award identification number and year): Housing Finance Agencies (HFA) Risk Sharing No. 14.188 (101-98145 and 2015) Auditor non-compliance code: H - Unauthorized distribution of project assets Finding resolution status: Open Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $36,802 Statement of condition #2025-001: During the year ended October 31, 2025, the Corporation paid entity expenses of $36,802. Criteria: Section 4 of the Regulatory Agreement states that funds shall be withdrawn only for expenses of the development. Effect or potential effect: The Corporation is not in compliance with the Regulatory Agreement at October 31, 2025. Cause: Project funds in the amount of $36,802 were withdrawn for the payment of entity legal expenses. Recommendation: The Borad of Directors should reimburse the Corporation for the entity expenses paid. Completion date: October 31, 2026 Management response: Management agrees with the finding and concurs with the auditor's recommendation.