Finding Text
Finding Reference Number: 2022-001 Type of Finding: FA Finding Resolution Status: Unresolved Information on Universe Population Size: The finding was not a result of a sampling procedure. Sample Size Information: The finding was not a result of a sampling procedure. Identification of Repeat Finding and Finding Reference Number: This is not a repeat finding. Criteria: Approved releases from replacement reserve were loans to be repaid upon receipt of subsidy from HUD. Statement of Condition: Required balance in the replacement reserve is deficient in the amount of $45,897. Cause: Procedures in place to ensure that loan repayments are made were not followed. Effect or Potential Effect: Replacement reserve is deficient. Auditor Non-Compliance Code: N Questioned Costs: There are no questioned costs. The finding does not relate to an undocumented transaction or unreasonable expenditure. Reporting Views of Responsible Officials: Management agrees with the finding. The replacement reserve deficiency will be funded in the amount of $45,897. Management will ensure that the replacement reserve loan repayments are made on a timely basis in the future. Context: Required deposits to the replacement reserve are deficient in the amount of $45,897. Recommendation: Management should repay replacement reserve loans when subsidy is received for which the loan was made. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Management agrees with the finding. The replacement reserve deficiency will be funded in the amount of $45,897. Management will ensure that the replacement reserve loan repayments are made on a timely basis in the future. Response Indicator: Agree Completion Date: March 3, 2023 Response: Management agrees with the finding. The replacement reserve deficiency will be funded in the amount of $45,897. Management will ensure that the replacement reserve loan repayments are made on a timely basis in the future.