Finding 44654 (2022-001)

Schedule reference number 2022-001 Title and AL Number of Federal Program: Home Improvement Partnership Grant (AL 14.239) Type of finding: Federal Award Resolution Status: In process. Population size: N/A Sample size: N/A Repeat finding: No. Criteria: The regulatory agreement stipulates that a monthly deposit be made to the Reserve for Replacement Account. Statement of Condition: The monthly deposit of $4,646 to the Reserve for Replacement account was not done for July 2021. Cause: Since the mortgage was refinanced in late June, management thought there was no need to make the July deposit. Effect or Potential Effect: The Reserve for Replacement account may have a shortfall of $4,646. Auditor Non-Compliance Code: N. Questioned costs: N/A. Reporting views of responsible officials: Management thought there was no need to make the deposit in July due to the refinancing. Contract Number: 114-44098. Context: The shortfall was noticed at the time of performing the audit. Recommendation: Management should make an additional deposit to make up the shortfall when funds become available. Auditors' summary of auditee's comment: They are in agreement. Proposed completion date: May 31, 2023. Response: Management agrees with the finding and will make an additional deposit to the Reserve for Replacement account when the funds become available.