Finding 45829 (2022-001)

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Requirement
LN
Questioned Costs
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Year
2022
Accepted
2023-06-11
Audit: 41507
Organization: Notre Dame Court, Inc. (TX)

AI Summary

  • Core Issue: The replacement reserve is short by $45,897 due to missed loan repayment procedures.
  • Impacted Requirements: Approved loans from the replacement reserve must be repaid upon receiving HUD subsidies.
  • Recommended Follow-Up: Ensure timely repayments of replacement reserve loans as subsidies are received.

Finding Text

Finding Reference Number: 2022-001 Type of Finding: FA Finding Resolution Status: Unresolved Information on Universe Population Size: The finding was not a result of a sampling procedure. Sample Size Information: The finding was not a result of a sampling procedure. Identification of Repeat Finding and Finding Reference Number: This is not a repeat finding. Criteria: Approved releases from replacement reserve were loans to be repaid upon receipt of subsidy from HUD. Statement of Condition: Required balance in the replacement reserve is deficient in the amount of $45,897. Cause: Procedures in place to ensure that loan repayments are made were not followed. Effect or Potential Effect: Replacement reserve is deficient. Auditor Non-Compliance Code: N Questioned Costs: There are no questioned costs. The finding does not relate to an undocumented transaction or unreasonable expenditure. Reporting Views of Responsible Officials: Management agrees with the finding. The replacement reserve deficiency will be funded in the amount of $45,897. Management will ensure that the replacement reserve loan repayments are made on a timely basis in the future. Context: Required deposits to the replacement reserve are deficient in the amount of $45,897. Recommendation: Management should repay replacement reserve loans when subsidy is received for which the loan was made. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management agrees with the finding. The replacement reserve deficiency will be funded in the amount of $45,897. Management will ensure that the replacement reserve loan repayments are made on a timely basis in the future. Response Indicator: Agree Completion Date: March 3, 2023 Response: Management agrees with the finding. The replacement reserve deficiency will be funded in the amount of $45,897. Management will ensure that the replacement reserve loan repayments are made on a timely basis in the future.

Corrective Action Plan

Finding Reference Number: 2022-001 Concur or Do Not Concur: Concur Agree or Disagree with Auditor Recommendations: Agree Actions Taken or Planned on the Finding: Management agrees with the finding. The replacement reserve deficiency will be funded in the amount of $45,897. Management will ensure that the replacement reserve loan repayments are made on a timely basis in the future. Completion Date: March 3, 2023

Categories

HUD Housing Programs Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $6.58M