Finding 554719 (2024-003)

Finding 2024-003: Lower Income Housing Assistance Program - Section 8 New Construction and Substantial Rehabilitation Assistance Listing Number: 14.182 U.S. Department of Housing and Urban Development Compliance Requirements: Special Tests and Provisions Type of finding: Internal Control (material weakness) and Compliance (material noncompliance) Criteria: Mortgage Restructuring Loan terms require an annual payment of 85% of restricted surplus cash to be paid on the note. Condition: The Organization did not make the required $45,194 payment on the Mortgage Restructuring Loan in 2024. Cause: The Organization has not established a monitoring process to ensure that required payments are made in accordance with the terms of the loan. Effect: Noncompliance with the Mortgage Restructuring Loan payment terms. Recommendation: The Organization should strengthen its internal controls with adopted policies and procedures to establish a monitoring process to ensure compliance with Mortgage Restructuring Loan terms and conditions. Grantee’s Response: See corrective action plan.