Finding 1238992 (2024-002)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2024
Accepted
2026-09-30
Audit: 413861
Auditor: 060903326

AI Summary

  • Core Issue: The board of directors is not meeting regularly, which affects their ability to oversee the Project effectively.
  • Impacted Requirements: Regular meetings are essential for the board to fulfill their fiduciary duties and provide necessary governance.
  • Recommended Follow-Up: The board should establish a schedule for regular meetings to ensure proper oversight and management of the Project.

Finding Text

Finding No. 2024-002 – Board Oversight – Other Matter Criteria: Board of directors should convene on a regular basis to fulfill their fiduciary duties and provide governance to the Project. Board of directors should be active and oversee responsibilities of the Project. Condition: During our audit testing, we noted that the board of directors were not holding board meetings regularly. Effect: Board of directors may not be providing sufficient oversight of the management company and the Project’s financial transactions. Cause: Board of directors are not meeting on a regular basis. Recommendation: We recommend that the board of directors meet on a regular basis to fulfill their fiduciary duties. Reporting Views of Responsible Officials: Management agrees with the finding, see the Corrective Action Plan.

Corrective Action Plan

The Board does meet as required, is readily available for consultation and guidance whenever such matters arise and is active in its oversight of the Project.

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1238989 2024-001
    Material Weakness Repeat
  • 1238990 2024-001
    Material Weakness Repeat
  • 1238991 2024-002
    Material Weakness Repeat
  • 1238993 2024-003
    Material Weakness Repeat
  • 1238994 2024-003
    Material Weakness Repeat
  • 1238995 2024-004
    Material Weakness Repeat
  • 1238996 2024-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.427 RURAL RENTAL ASSISTANCE PAYMENTS $221,947
10.415 RURAL RENTAL HOUSING LOANS $10,809