Finding Text
Finding reference number: 2019-005
Assistance Listing title and number (federal award identification and year): Mortgage Insurance for the Purchase or Refinancing of Existing Multifamily Housing Projects; Assistance Listing No. 14.155, for the year ended December 31, 2019.
Auditor non-compliance code: Z - Other
Finding resolution status: Resolved
Universe population size: 469 invoices
Sample size information: 25 invoices
Statistically valid sample: 1 invoices
Name of Federal Agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition 2019-005: At December 31, 2019, the management agent was unable to provide supporting invoices for 1 disbursement.
Criteria: Pursuant to paragraph 9(c) of the Regulatory Agreement, the mortgaged property, equipment, buildings, plans, offices, apparatus, devices, books, contracts, records, documents, and other papers relating thereto shall at all times be maintained in reasonable condition for proper audit. The books and records of the Corporation are required to be kept in accordance with HUD Financial Operations and Accounting Procedures for Insurance Handbook (4370.2) Chapter 2: Financial Operations and Accounting (Section 2-3 Maintenance of Books and Records), which requires the records to be complete and accurate.
Effect or potential effect: The Corporation is not in compliance with the Regulatory Agreement.
Cause: Due to the delay in requesting an audit be performed, invoices were placed into storage and were not able to be located.
Recommendation: Management should retain all invoices for disbursements in the future in order for its records to be complete and accurate.
Completion Date: 12/31/2024
Reporting views of responsible officials: Management agrees with the recommendation. Policies and procedures have been updated to make sure records are complete and accurate.