Finding 479165 (2022-001)

Significant Deficiency

Requirement

Questioned Costs

Year

2022

Accepted

2024-07-23

Audit: 315693

Organization: Little Earth of United Tribes Housing Corporation (MN)

Auditor: Mahoney Ulbrich Christiansen & Russ PA

AI Summary

Core Issue: The Corporation failed to make the required 12 monthly deposits into the replacement reserve, completing only 10 deposits in 2022.
Impacted Requirements: This shortfall results in an underfunding of $35,234, violating the agreement with HUD.
Recommended Follow-Up: Ensure the Corporation deposits the missing $35,234 into the replacement reserve in 2023 as promised.

Finding Text

Finding 2022-001 - Replacement Reserve Deposits Assistance Listing Number 14.195 - Section 8 Housing Assistance Payments Program Federal Award Finding Criteria - Pursuant to the Corporation’s Regulatory Agreement with the Department of Housing and Urban Development (HUD), 12 monthly deposits of $17,617 are required into the replacement reserve (annually $211,404). Condition - The Corporation only made 10 monthly deposits ($176,170) into the replacement reserve in 2022. Effect - The replacement reserve is underfunded by $35,234. Cause - Monthly invoices for the replacement reserve deposits were not received. Recommendation - The Corporation should make an additional deposit to the replacement reserve of $35,234 in 2023. Auditee’s comments and response - Management will make an additional deposit to the replacement reserve of $35,234 in 2023. Status - Unresolved

Corrective Action Plan

Management will make an additional deposit to the replacement reserve of $35,234 in 2023.

Other Findings in this Audit

1055607 2022-001

Significant Deficiency

Programs in Audit

ALN	Program Name	Expenditures
14.195	Lower Income Housing Assistance Program - Section 8 Moderate Rehabilitation	$3.03M
14.239	Home Investment Partnerships Program	$500,000
14.244	Renewal Community and Empowerment Zone Programs	$500,000
14.218	Community Development Block Grants/entitlement Grants	$350,000