Finding 528654 (2024-001)

-
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-18

AI Summary

  • Core Issue: Hancock County Homes Foundation did not make timely deposits to the replacement reserve account.
  • Impacted Requirements: This failure means non-compliance with USDA's requirement for timely deposits, leading to an underfunded reserve.
  • Recommended Follow-Up: Ensure timely deposits moving forward, as management has acknowledged the issue and proposed a corrective action plan.

Finding Text

2024-001 –Replacement Reserve – Federal Assistance Listing Number 10.415 – U.S. Department of Agriculture – Section 515 Rural Rental Housing Loan Criteria: The U.S. Department of Agriculture (USDA) Rural Development requires deposits to be deposited timely in the reserve for replacement bank account. Condition: Deposits to the replacement reserve account were not timely. Cause: Hancock County Homes Foundation failed to deposit funds timely to replacement reserve account. Effect: Hancock County Homes Foundation was not in compliance with all USDA compliance requirements and the replacement reserve account was underfunded. Recommendation: Recommend timely deposits. Management's Response: Management agrees with this recommendation and has provided the corrective action plan following the Single Audit report. Repeat Finding: 2023-001

Corrective Action Plan

Management will establish more oversight on the deposits to replacement reserve account.

Categories

Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.415 Rural Rental Housing Loans $2.52M
10.427 Rural Rental Assistance Payments $424,000