Finding 589603 (2022-001)

-
Requirement
P
Questioned Costs
-
Year
2022
Accepted
2023-07-31

AI Summary

  • Core Issue: The Corporation did not deposit required surplus cash into the residual receipts account within 90 days after the end of the 2021 fiscal year, violating its agreement with HUD.
  • Impacted Requirements: The failure to make this deposit is a breach of the Regulatory Agreement, which mandates timely deposits to maintain compliance.
  • Recommended Follow-Up: Management should ensure the deposit is made promptly or secure a waiver; if the waiver is denied, the deposit must be completed by August 1, 2023.

Finding Text

S3800-010 Finding Reference Number 2022-001 S3800-011 Title and CFDA Number of Federal Program - Section 223(a)(7) Mortgage 14.155 S3800-015 Type of Finding ? Federal Award S3800-016 Finding Resolution Status ? In Process S3800-017 Information on Universe Population Size ? N/A S3800-018 Sample Size Information ? N/A S3800-019 Identification of Repeat Finding and Finding Reference Number ? N/A S3800-020 Criteria ? In accordance with the Regulatory Agreement between the Cooperative and HUD, Surplus Cash is required to be deposited in a residual receipts account in the name of the Cooperative within 90 days subsequent to the end of the fiscal year. S3800-030 Statement of Condition ? The Corporation failed to make the required deposit within 90 days subsequent to the end of the 2021 fiscal year into the residual receipts account. S3800-032 Cause ? A change in regional manager caused the required deposit to be overlooked. S3800-033 Effect or Potential Effect - The Corporation is in violation of its Regulatory Agreement between the Corporation and HUD. S3800-035 Auditor Non-Compliance Code ? B S3800-040 Questioned Costs ? $0 S3800-045 Reporting Views of Responsible Officials ? Management is requesting a waiver of the required deposit. S3800-050 Context ? The required deposit for the year ended April 30, 2021 was not made within 90 days of year-end. The amount was calculated, but the deposit was not made. S3800-080 Recommendation ? Management needs to ensure the residual receipts deposit is made within 90 days of year- end. S3800-090 Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendations ? Management needs to ensure the residual receipts deposit is made within 90 days of year- end. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? August 1, 2023 S3800-150 Response ? Management is requesting a waiver of the required deposit. If denied, management will deposit fund into the residual receipts account.

Categories

HUD Housing Programs Cash Management Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.195 Section 8 Housing Assistance Payments Program $135,534
14.155 Mortgage Insurance for the Purchase Or Refinancing of Existing Multifamily Housing Projects $11,236