Finding 586527 (2022-001)

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Requirement
P
Questioned Costs
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Year
2022
Accepted
2024-01-25

AI Summary

  • Core Issue: The board of directors is not meeting regularly, which affects their ability to provide proper oversight.
  • Impacted Requirements: Regular meetings are essential for fulfilling fiduciary duties and governance responsibilities.
  • Recommended Follow-Up: Ensure the board schedules and conducts meetings consistently to improve oversight of management and financial transactions.

Finding Text

2022-001 BOARD OVERSIGHT Criteria: Board of directors should convene on a regular basis to fulfill their fiduciary duties and provide governance to the Project. Board of directors should be active and oversee responsibilities of the Project. Condition: During out audit testing, we noted that the board of directors were not holding board meetings regularly. Cause: Board of directors are not meeting on a regular basis. Effect: Board of directors may not be providing sufficient oversight of the management company and the Project’s financial transactions. Questioned Costs: N/A Recommendation: We recommend that the board of directors meet on a regular basis to fulfill their fiduciary duties. Management’s Views and Corrective Action Plan: The board will work to meet on a more regular basis.

Categories

Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.427 Rural Rental Assistance Payments $145,967
10.415 Rural Rental Housing Loans $29,869