Finding 570685 (2023-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2025-07-08

AI Summary

  • Core Issue: The Corporation's reserve for replacement accounts were underfunded by $10,840 as of March 31, 2023, violating HAP Contract terms.
  • Impacted Requirements: Monthly deposits into separate reserve accounts were not made, leading to non-compliance.
  • Recommended Follow-Up: Ensure a transfer of $10,840 is completed and all future deposits are made as required by the contracts.

Finding Text

Finding reference number: #2023-001 Assistance Listing title and number (Federal award identification number and year): Section 8 Housing Assistance Payments, Assistance Listing No. 14.195 Identification numbers Property Year of award Questioned costs CO99T851006 REDI IV 2017 $3,490 CO99T841007 REDI III 2017 $7,350 Auditor non-compliance code: N - Special Tests and Provisions Finding resolution status: Cleared Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $10,840 Repeat Finding: Yes Statement of condition #2023-001 (Assistance Listing No. 14.195): At March 31, 2023, the Corporation's reserve for replacement accounts were underfunded. Criteria: The HAP Contracts require monthly deposits into separate reserve for replacement accounts. Effect or potential effect: The Corporation is not in compliance with the terms of the HAP Contracts. At March 31, 2023, the reserve for replacements accounts are underfunded $10,840. Cause: The Corporation did not make the required monthly deposits to the various reserve for replacements accounts. Recommendation: The Agent should transfer $10,840 from the respective operating accounts to the reserve for replacements accounts. The Agent should make all required deposits to the reserve for replacements accounts. Completion date: October 19, 2023 (REDI IV), January 11, 2024 (REDI III) Management response: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation made the $3,490 required transfer for REDI IV and the $7,350 deposit to REDI III.

Corrective Action Plan

Statement of Condition #2023-001: At March 31, 2023, the Corporation's reserve for replacement accounts were underfunded. Recommendation: The Agent should transfer $10,840 from the respective operating accounts to the reserve for replacements accounts. The Agent should make all required deposits to the reserve for replacements accounts. Action(s) taken or planned on the finding: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation made the $3,490 required transfer for REDI IV and the $7,350 deposit to REDI III.

Categories

Questioned Costs HUD Housing Programs Special Tests & Provisions Subrecipient Monitoring

Other Findings in this Audit

  • 570686 2023-002
    Material Weakness
  • 570687 2023-003
    Significant Deficiency Repeat
  • 570688 2023-006
    Material Weakness
  • 570689 2023-007
    Significant Deficiency
  • 570690 2023-001
    Material Weakness Repeat
  • 570691 2023-002
    Material Weakness
  • 570692 2023-006
    Material Weakness
  • 570693 2023-007
    Significant Deficiency
  • 570694 2023-004
    Material Weakness
  • 570695 2023-005
    Significant Deficiency Repeat
  • 570696 2023-006
    Material Weakness
  • 570697 2023-007
    Significant Deficiency
  • 570698 2023-008
    Significant Deficiency
  • 570699 2023-006
    Material Weakness
  • 570700 2023-007
    Significant Deficiency
  • 570701 2023-006
    Material Weakness
  • 570702 2023-007
    Significant Deficiency
  • 570703 2023-006
    Material Weakness
  • 570704 2023-007
    Significant Deficiency
  • 1147127 2023-001
    Material Weakness Repeat
  • 1147128 2023-002
    Material Weakness
  • 1147129 2023-003
    Significant Deficiency Repeat
  • 1147130 2023-006
    Material Weakness
  • 1147131 2023-007
    Significant Deficiency
  • 1147132 2023-001
    Material Weakness Repeat
  • 1147133 2023-002
    Material Weakness
  • 1147134 2023-006
    Material Weakness
  • 1147135 2023-007
    Significant Deficiency
  • 1147136 2023-004
    Material Weakness
  • 1147137 2023-005
    Significant Deficiency Repeat
  • 1147138 2023-006
    Material Weakness
  • 1147139 2023-007
    Significant Deficiency
  • 1147140 2023-008
    Significant Deficiency
  • 1147141 2023-006
    Material Weakness
  • 1147142 2023-007
    Significant Deficiency
  • 1147143 2023-006
    Material Weakness
  • 1147144 2023-007
    Significant Deficiency
  • 1147145 2023-006
    Material Weakness
  • 1147146 2023-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $1.94M
14.239 Home Investment Partnerships Program $592,026
14.195 Section 8 Housing Assistance Payments Program $66,763
14.191 Multifamily Housing Service Coordinators $58,741