FAC Explorer

Finding 503725 (2024-003)

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Requirement
N
Questioned Costs
-
Year
2024
Accepted
2024-10-25
Audit: 325960
Organization: Mantua I Corporation (PA)
Auditor: McKonly & Asbury LLP

AI Summary

  • Core Issue: Mantua I Corporation missed one of twelve required monthly deposits to the reserves for replacement account.
  • Impacted Requirements: This non-compliance with HUD regulations could lead to penalties or funding issues.
  • Recommended Follow-Up: Management should contact HUD to request a waiver for deposits when cash is insufficient and keep records of this communication.

Finding Text

Criteria: The Capital Advance Regulatory Agreement requires management to complete monthly deposits of a prescribed amount to the reserves for replacement account. Condition: Monthly deposits to the reserves for replacement account were not completed for the following Entity during the year ended June 30, 2024: Mantua I Corporation – one of twelve monthly deposits not completed. Cause: Management did not believe there was adequate operating cash on hand to facilitate the monthly deposits. Effect or potential effect: Not completing monthly deposits prevents the Entity from being in compliance with the requirements from HUD. Recommendation: Management should communicate with HUD to waive monthly deposits to the reserves for replacement account when there is insufficient operating cash to facilitate the deposit. Documentation of this communication should be maintained. Questioned costs: None identified. Views of responsible officials: Subsequent to report issuance management has addressed all shortfalls identified.

Corrective Action Plan

Finding 2024-003: Noncompliance – Reserves for Replacement Deposits Monthly deposits to the reserves for replacement account were not completed for the following Entity during the year ended June 30, 2024: Mantua I Corporation – one of twelve monthly deposits not completed. Planned Corrective Action: Subsequent to report issuance management has addressed all shortfalls identified. Mark Deitcher, CFO, is responsible for the corrective action plan. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Mark Deitcher at 1-215-557-8414.

Categories

HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.239 Home Investment Partnerships Program $150,000
14.181 Supportive Housing for Persons with Disabilities $5,547