Finding Text
S3800-010: Finding Reference Number 2026-001 (Material Weakness) S3800-011: Program Information Federal Program: Mortgage Insurance for Rental and Cooperative Housing Section 221(d)(4) Federal Agency: U.S. Department of Housing and Urban Development (HUD) Assistance Listing #: 14.135 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: N - Special Tests and Provisions S3800-015: Type of Finding Financial Statement and Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size N/A S3800-018: Sample Size Information N/A S3800-019: Identification of Repeat Finding and Finding Reference Number 2025-001, 2024-001, 2023-001, 2022-001, and 2021-001 S3800-020: Criteria In accordance with the regulatory agreement subsection 9(d) Organization’s books and records are maintained in accordance with generally accepted accounting principles (GAAP). S3800-030: Statement of Condition Several misstatements were identified by the auditor in the unaudited financial statements and accounts of the Organization. S3800-032: Cause The Organization lacks adequate internal controls to ensure that books and records are accurate and complete. S3800-033: Effect or Potential Effect The Organization was not in compliance with the regulatory agreement requirement to maintain accurate and complete books and accounts. S3800-035: Auditor Non-Compliance Code S – Internal Control Deficiencies S3800-040: Questioned Costs None S3800-045: Reporting Views of Responsible Officials Management agrees with the finding. S3800-050: Context On the general ledger, various accounts such as escrow balances, tenant security deposits and vacancies did not tie to supporting documentation. Certain assets, liabilities, and net assets beginning balance did not roll forward from the previous year ending net assets balance. S3800-080: Recommendation We recommend the Organization follows their policies and procedures to ensure that accounting records are kept accurate and complete, and a responsible official should review and sign off on the financial statements. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date September 30, 2026 S3800-150: Response See Corrective Action Plan