Finding 47738 (2022-001)

S3800-010 Finding Reference Number ? 2022-001 S3800-011 Title and CFDA Number of Federal Program ? 14.126 HUD Insured Mortgage S3800-015 Type of Finding ? Federal Award S3800-016 Finding Resolution Status ? Open 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 ? In accordance with the Regulatory Agreement between the Cooperative and HUD, the Cooperative is required to make monthly deposits into the replacement reserve in an amount approved by HUD. S3800-030 Statement of Condition ? The Cooperative did not fund the replacement reserve in the full amount required. S3800-032 Cause ? The increase in monthly deposit to the replacement reserve effective July 1, 2021 did not get implemented until September 1, 2021. S3800-033 Effect or Potential Effect ? The replacement reserve is underfunded by $252. S3800-035 Auditor Non-Compliance Code ? N S3800-040 Questioned Costs ? $252 S3800-045 Reporting Views of Responsible Officials ? The prior management company did not implement the deposit increase timely. The current management company will deposit the underfunded amount and confirm with the bank any future increases in the monthly deposit are implemented timely. S3800-050 Context ? The replacement reserve is underfunded. S3800-080 Recommendation ? The Cooperative needs to confirm the monthly replacement reserve deposits are in the amount required by HUD. S3800-090 Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendations ? Management will deposit $252 into the replacement reserve and confirm the monthly deposit reflects the most current required amount, per HUD. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? June 2023