Finding 50220 (2022-001)

-
Requirement
LN
Questioned Costs
-
Year
2022
Accepted
2022-12-26

AI Summary

  • Core Issue: The Project overfunded the replacement reserve by $943 due to an over-correction in monthly deposit amounts.
  • Impacted Requirements: Monthly deposits must align with the regulatory agreement, which specifies a required amount of $2,615.
  • Recommended Follow-Up: Management should regularly compare required annual amounts to monthly deposits to ensure compliance.

Finding Text

Finding Reference Number: 2022-001 Type of Finding: FA Finding Resolution Status: In Process 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: The regulatory agreement (as amended) requires monthly deposits of $2,615. Statement of Condition: The Project over-funded the replacement reserve in the amount of $943. Cause: The Project over-corrected for a change in the monthly deposit amount. Effect or Potential Effect: Replacement reserve is overfunded. 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. Management will request from the lender the excess replacement reserve funds in the amount of $943. Context: The Project over-funded the replacement reserve in the amount of $943. Recommendation: Management should compare the required annual amount to the monthly deposits made to determine if the correct amount is deposited. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management agrees with the finding. Management will request from the lender the excess replacement reserve funds in the amount of $943. Response Indicator: Agree Completion Date: August 8, 2022 Response: Management agrees with the finding. Management will request from the lender the excess replacement reserve funds in the amount of $943.

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. Management will request from the lender the excess replacement reserve funds in the amount of $943. Completion Date: August 8, 2022

Categories

Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $3.60M
14.195 Section 8 Housing Assistance Payments Program $452,145
14.191 Multifamily Housing Service Coordinators $34,441