Finding Text
Finding Reference Number: 2023-01
Title and Federal Assistance Listing Number of Federal Program:
14.157 Section 202 Capital Advance and PRAC
Type of Finding: Federal Award Finding
Finding Resolution Status: Unresolved
Information on Universe Population Size: Not Applicable
Sample Size Information: Not Applicable
Identification of Repeat Finding and Finding Reference Number: Not Applicable
Criteria Fidelity bond policy should provide coverage totaling two months gross potential rent or $50,000, whichever is
higher.
Statement of Condition: During the year ended December 31, 2023, the Corporation's fidelity bond was less than the required
amount of two months gross potential rent or $50,000, whichever is higher.
Cause: Oversight by management.
Effect or Potential Effect: The Project is noncompliant with the HUD regulatory agreement.
Auditor Non-Compliance Code: Z - Other
Questioned Costs: $-
Reportable Views of Responsible Officials: Management is in agreement with the finding and has started the process to
increase the policy coverage amount.
Context: Not Applicable
Recommendation: The Corporation should increase the policy to be in compliance with HUD regulations.
Response Indicator: Agree
Status Indicator: Not Cleared
Response: Agree.
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