Finding Text
S3800-010 Finding Reference Number ? 2022-001 S3800-011 Title and CFDA Number of Federal Program ? 14.157 Section 202 Capital Advance and Project Rental Assistance Contract S3800-015 Type of Finding ? Federal Award S3800-016 Finding Resolution Status ? Unresolved 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 Corporation and HUD, the Corporation is required to make monthly deposits, in an amount determined by HUD, into a replacement reserve account. S3800-030 Statement of Condition ? The Corporation failed to make five out of the eleven required monthly deposits into the replacement reserve account. S3800-032 Cause ? The Project did not have sufficient cash flow to fund the deposits required for 2022. S3800-033 Effect or Potential Effect ? The Corporation is in violation of its Regulatory Agreement. S3800-035 Auditor Non-Compliance Code ? N S3800-040 Questioned Costs ? $11,622 S3800-045 Reporting Views of Responsible Officials ? A retroactive suspension of deposits has been submitted to HUD for the period June 1, 2022 through November 30, 2022. A suspension of deposits has been approved for the period December 1, 2022 through May 31, 2023. If the retroactive suspension of deposits is not approved by HUD, management will deposit the underfunded amount into the replacement reserve. S3800-050 Context ? The Corporation failed to make the required deposits into the replacement reserve account. S3800-080 Recommendation ? The Corporation needs to deposit $11,652 to its replacement reserve if a retroactive suspension of deposits is not approved. S3800-090 Auditor?s Summary of the Auditee?s Comments on the Finding and Recommendations ? Management agrees with the finding and the recommendation. S3800-130 Response Indicator ? Agree S3800-140 Completion Date ? March 2023 S3800-150 Response ? Management is aware of the monthly deposit requirement and is awaiting HUD?s approval or denial for the Corporation?s request of a suspension of deposits for the period June 1, 2022 through November 30, 2022.