Finding Text
S3800-010: Finding Reference Number
2023-002 (Material Weakness)
S3800-011: Program Information
Federal Program: Mortgage Insurance for Purchase or Refinancing of Existing Multifamily Rental
Housing (Section 207/223(F))
Federal Agency: Department of Housing and Urban Development (HUD)
Assistance Listing #: 14.155
Pass-through Entity: None
Federal Award Identification Number and Year: N/A
Type of Compliance Finding: N – Special Tests and Provisions
S3800-015: Type of Finding
Federal Awards
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
2022-002
S3800-020: Criteria
HUD Form-9250, Funds Authorizations, requires the Organization to deposit $1,842 into the
replacement reserve account on a monthly basis.
S3800-030: Statement of Condition
During our audit of the Organization’s fiscal year ended December 31, 2023 federal award
program, we noted the Organization failed to make the required monthly deposits into the reserve
for replacement account for all twelve months. The Organization deposited monthly $1,796 as
opposed to the approved $1,842.
S3800-032: Cause
The Organization deposited the prior required monthly amount into the reserve for replacement
account.
S3800-033: Effect or Potential Effect
The Organization was not in compliance with the regulatory agreement to make required monthly
deposits into the reserve for replacement account.
S3800-035: Auditor Non-Compliance Code:
N – Reserve for replacements deposits
S3800-040: Questioned Costs
$544
S3800-045: Reporting Views of Responsible Officials
Management agrees with the finding.
S3800-050: Context
The Organization deposited $21,560 onto the reserve for replacement account during the year
ended December 31, 2023. The Organization was required to deposit $22,104 for the year. Per
Missouri Housing Development Commission (HUD’s designee), the Organization was required to
increase the monthly deposit to the reserve for replacement account from $1,796 to $1,842
effective June 1, 2019. The $544 questioned costs only accounts for the current fiscal year
underfunding.
S3800-080: Recommendation
The Organization should deposit the shortfall of $544 into the reserve for replacement account,
as well as the shortfall for 2019, 2020, 2021 and 2022, as soon as possible and ensure the
process is being followed to deposit and reconcile the reserve for replacement account on a
monthly basis.
S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and
Recommendations
Auditee agreed with our recommendation.
S3800-130: Response Indicator
Agree
S3800-140: Completion Date or Proposed Completion Date
June 30, 2024
S3800-150: Response
See Corrective Action Plan