Finding 31239 (2022-003)

-
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-01-03

AI Summary

  • Core Issue: The Corporation failed to make required monthly deposits into the reserve for replacements, totaling a deficiency of $779 for fiscal year 2022.
  • Impacted Requirements: HUD regulations mandated specific monthly deposit amounts of $3,540 and $3,618 for different periods, which were not met.
  • Recommended Follow-up: Ensure future compliance by establishing a monitoring system for timely deposits into the reserve for replacements.

Finding Text

Type of Finding: Other Matters Criteria or Specific Requirement: HUD regulations and the regulatory agreement required deposits into the reserve for replacements of $3540 per month from July 2021 through August 2021 and a deposit of $3,618 for September 2021 through June 2022. Condition: The Corporation did not deposit the required amounts into the reserve for replacements for each month during the year ended June 30, 2022. Questioned Costs: None Context: The Corporation had a $779 deficiency in the reserve from replacements from fiscal year 2022. The Corporation made up for the prior year deficiency, however, it did not deposit the required current year amounts into the reserve for replacements for each month during the year ended June 30, 2022. Repeat Finding: No.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding. Management made an additional deposit to make up for the deficit in August 2022.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 31182 2022-001
    Material Weakness Repeat
  • 31237 2022-003
    Material Weakness
  • 31238 2022-001
    Material Weakness
  • 607624 2022-001
    Material Weakness Repeat
  • 607679 2022-003
    Material Weakness
  • 607680 2022-001
    Material Weakness
  • 607681 2022-003
    -

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $4.63M
14.195 Section 8 Housing Assistance Payments Program $991,678