Finding Text
S3800-010: Finding Reference Number 2022-002 (Significant Deficiency) S3800-011: Program Information Federal Program: Mortgage Insurance for Purchase or Refinancing of Existing Multifamily Rental Housing (Section 207/223(F) Federal Agency: Department of Housing and Urban Development (HUD) Assistance Listing #: 14.155 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 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 N/A S3800-020: Criteria HUD Form-9250, Funds Authorizations, requires the Organization to deposit $2,613 for January ? August 2022 and $2,673 for September ? December 2022 into the replacement reserve account on a monthly basis. S3800-030: Statement of Condition During our audit of the Organization?s fiscal year ended December 31, 2022 federal award program, we noted the Organization failed to make the required monthly deposits into the reserve for replacement account for twelve months. The Organization deposited $2,557 for all twelve months as opposed to the approved $2,613 for eight months and $2,673 for the last four months. S3800-032: Cause The Organization deposited an incorrect amount into the reserve for replacement account, cause unknown. S3800-033: Effect or Potential Effect The Organization was not in compliance with the regulatory agreement to make required monthly deposits into the reserve for replacement account. S3800-035: Auditor Non-Compliance Code N ? Reserve for replacements deposits S3800-040: Questioned Costs $912 S3800-045: Reporting Views of Responsible Officials Management agreed with the finding. S3800-050: Context The Organization deposited $30,684 onto the reserve for replacement account during the year ended December 31, 2022. The Organization was required to deposit $31,596 for the year, per Missouri Housing Development Commission (HUD?s designee). S3800-080: Recommendation The Organization should deposit the shortfall of $912 into the reserve for replacement account as soon as possible and ensure the process is being followed to deposit and reconcile the reserve for replacement account on a monthly basis. 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 June 30, 2023 S3800-150: Response See Corrective Action Plan