Finding Text
Federal Agency: U.S. Department of Housing and Urban Development
Federal Program Title: Section 202 Capital Advance
Federal Assistance Listing Number: 14.157
Federal Award Identification Number and Year: MN46S931002 - 1993
Pass-Through Agency: N/A
Pass-Through Number(s): N/A
Award Period: July 1, 2022 through June 30, 2023
Type of Finding: Significant Deficiency in Internal Control over Major Federal Programs
Criteria or Specific Requirement: Management is responsible for maintaining required monthly deposits into the Replacement Reserve account in accordance with form HUD-9250.
Condition: The project did not make the correct monthly deposit that was required in order to be in compliance with HUD for the year under audit.
Questioned Costs: $4
Cause: The project miscalculated the monthly amount to deposit as $1,293 when it should have been $1,293.33 causing a $4 deficiency as of year-end.
Effect: The Replacement Reserve escrow balance was underfunded by $4 at June 30, 2023.
Repeat Finding: No.
Recommendation: Management should implement a process to ensure the required monthly deposit into the Replacement Reserve is in accordance with form HUD-9250.
Views of Management: There is no disagreement with the audit finding.
The Project made a deposit to correct the deficiency in the replacement reserve on August 30, 2023.