Finding Text
Finding Type - Immaterial noncompliance with major program requirements Title and Assistance Listing Number of Federal Program -14.155 - U S. Department of Housing and Urban Development - Section 223(f) HUD-Insured Mortgage Finding Resolution Status - Cleared Information on Universe and Population Size - N/A Sample Size Information - N/A Identification of Repeat Finding and Finding Reference Number - N/A Criteria - The Organization should have made 8 monthly deposits of 52,175 and 4 monthly deposits of 52,225 into the reserve for replacements account as required by the regulatory agreement. Statement of Condition - The Organization failed to make the required reserve for replacements deposits in the current fiscal year. Cause - The Organization failed to monitor the cash requirements of the reserve for replacement account as specified by the regulatory agreement. Effect or Potential Effect - The replacement reserve account was underfunded in the current fiscal year by $200 Auditor Noncompliance Code - N - Reserve for replacements deposits Context - An increase in the required deposits was approved effective September 2022; however, the monthly amount deposited was not updated to reflect this increase. Recommendation - All required deposits should be made in accordance with the regulatory agreement. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations - Management should make the required reserve for replacements deposits in the current fiscal year. Response Indicator - Agree Response - Management detected the error and deposited the underfunded amount in March 2023. Management acknowledges noncompliance in the current fiscal year and has taken measures to improve internal controls over compliance.