Finding 570690 (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.

Categories

Questioned Costs HUD Housing Programs Special Tests & Provisions Subrecipient Monitoring

Other Findings in this Audit

  • 570685 2023-001
    Material Weakness Repeat
  • 570686 2023-002
    Material Weakness
  • 570687 2023-003
    Significant Deficiency Repeat
  • 570688 2023-006
    Material Weakness
  • 570689 2023-007
    Significant Deficiency
  • 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