Finding 1225962 (2025-002)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2026-08-05
Audit: 408595
Organization: Heartland House, Inc. (OK)
Auditor: JOHN FLUSCHE CPA

AI Summary

  • Core Issue: The replacement reserve bank account is underfunded by $2,620 due to missed monthly deposits.
  • Impacted Requirements: The Project must adhere to the requirement of making regular deposits into the replacement reserve account.
  • Recommended Follow-Up: Management should promptly deposit the overdue funds to restore the account balance by the completion date of 03/20/2026.

Finding Text

FINDING REF NUMBER: 2025-002: Title and CFDA Number of Federal Program: Section 811 Capital Advance CFDA # 14.181 Type of Finding: Federal Award Finding Finding Resolution Status: Unresolved Criteria: The Project is required to maintain make monthly deposits into the replacement reserve bank account. Statement of Condition: The Project’s replacement reserve bank account is underfunded $2,620. Cause: The Project’s management did not make the monthly deposits into the replacement reserve account. Effect or Potential Effect: The Project does not have the necessary funds in the replacement reserve account. Reporting Views of Responsible Officials: The Project’s management should deposit the monthly funds into the replacement reserve account as soon as possible, to bring the account to the correct balance. Recommendation: The Project’s management should deposit the monthly funds into the replacement reserve account as soon as possible, to bring the account to the correct balance. Auditor’s Summary of the Auditee’s Comments on the Finding Recommendations: The Project’s management should make the monthly deposits into the replacement reserve account. Response Indicator: Agree Completion Date: 03/20/2026 Response: The Project’s management will deposit the monthly funds into the replacement reserve bank account as soon as possible.

Corrective Action Plan

FINDING No. 2025-002: Recommendation: The Project’s management should deposit the monthly funds into the Replacement Reserve bank account as soon as possible, to bring the account to the correct balance. Action Taken: The Project’s management will deposit the monthly funds into the replacement reserve account in 2026.

Categories

HUD Housing Programs Reporting

Other Findings in this Audit

  • 1225961 2025-001
    Material Weakness Repeat
  • 1225963 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.181 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES $1.03M
14.195 PROJECT-BASED RENTAL ASSISTANCE (PBRA) $71,207