Finding Text
Finding Reference Number: 2022-01 Title and CFDA Number of Federal Program: Section 202 Capital Advance and PRAC, 14.157 Type of Finding: Federal Award Finding Finding Resolution Status: In Process Information on Universe Population Size: 0 Sample Size Information: 0 Identification of Repeat Finding and Finding Reference Number: Not applicable Criteria: Fidelity bond policy should provide coverage totaling two months gross potential rent or $50,000, whichever is higher. Statement of Condition: During the year ended December 31, 2022, the Company's fidelity bond was less than the required amount of two months gross potential income or $50,000. Cause: Oversight by management. Effect or Potential Effect: Noncompliant with HUD regulations. Auditor Non-Compliance Code: Z - Other Questioned Costs: $0 Reportable Views of Responsible Officials: Management is in agreement with the finding and has started the process to increase to increase the policy coverage amount. Context: Not applicable Recommendation: The Company should increase the policy to be in compliance with HUD regulations. Response Indicator: Agree Completion Date: 12/31/2023