Finding Text
Finding Reference Number: 2023-01
Title and CFDA Number of Federal Program: Section 202 Capital Advance and Project Rental Assistance 14.157
Type of Finding: Federal Award Finding
Finding Resolution Status: In Process
Information on Universe Population Size: n/a
Sample Size Information: n/a
Identification of Repeat Finding and Finding Reference Number: n/a
Criteria: The Corporation is required to fund $1,176 to the replacement reserve account monthly.
Statement of Condition: For the year ended September 30, 2023, the Corporation only funded the replacement reserve for
eleven months.
Cause: Unintentional error. The funding was missed in September.
Effect or Potential Effect: Required funding's were not made resulting in noncompliance with HUD regulations.
Auditor Non-Compliance Code: N - Reserve for replacement deposits
Questioned Costs: $1,176
Reportable Views of Responsible Officials: Management is in agreement with the finding and will make the required deposit.
Context: n/a
Recommendation: Management should review the policies and procedures surrounding replacement reserve deposits to ensure
the required deposit is made monthly. There should be additional review, with an emphasis on comparing required funding's to
funding's made.
Auditors’ Summary of the Auditee’s Comments on the Findings and Recommendations: Management will bolster policies
around replacement reserve funding's to ensure required funding's are made.
Response Indicator: Agree
Completion Date: 9/30/2024
Response: Management has reviewed the policies and procedures surrounding replacement reserve deposits and will ensure
personnel are trained to follow the policies and procedures. Management will review required funding's to funding's made and
ensure there are no deficiencies.
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