Finding 539046 (2024-001)

-
Requirement
N
Questioned Costs
$1
Year
2024
Accepted
2025-03-28

AI Summary

  • Core Issue: The Project failed to make adequate monthly deposits to the replacement reserve, missing $2,013.
  • Impacted Requirements: Deposits must align with HUD's regulatory agreement and any additional guidance.
  • Recommended Follow-Up: Strengthen internal controls over restricted cash to ensure compliance with deposit requirements.

Finding Text

Finding 2024-001: Delinquent deposits Program: Mortgage Insurance: Rental and Cooperative Housing for Moderate Income Families and Elderly, Market Interest Rate ALN Number: 14.135 Federal Agency: United States Department of Housing and Urban Development (HUD) Pass-Through Entity: Not Applicable Federal Award Identification Number: HUD Project No. 092-35746 Federal Award Year: December 31, 2024 Condition: The Project did not make adequate monthly deposits to the replacement reserve during the year. Criteria: The Project makes deposits to the replacement reserve in a manner consistent with the regulatory agreement as prescribed by HUD as well as any additional communications from HUD. Cause: The internal controls over restricted cash were not sufficient to ensure deposits for the replacement reserve were deposited in the appropriate amount. Effect: The Partnership did not deposit $2,013 of required deposits to the replacement reserve.

Corrective Action Plan

Auditee's Response to Finding: Management concurs with the finding. Recommendations: Management should implement internal controls over restricted cash that are sufficient to ensure deposits for replacement reserve are deposited in the appropriate amount. Management Comments: Management concurs with the finding and the recommendation. Completion Date: In progress

Categories

Questioned Costs HUD Housing Programs Internal Control / Segregation of Duties Subrecipient Monitoring

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.135 Mortgage Insurance Rental and Cooperative Housing for Moderate Income Families and Elderly, Market Interest Rate $16.52M