MICHIGAN INTERFAITH HOUSING CORPORATION, INC.Non-Profit

U.S. Department of Housing and Urban Development Finding 2023-003, CFDA #14.155 Section 223(f) – Insured Mortgage Condition: As of December 31, 2023, the replacement reserve account was underfunded by $714. Beginning in April of 2023, the increase in the monthly required deposit amount was inadvertently not made and the required amount from March 2023 continued to be paid throughout 2023. This caused the annual replacement reserve to be underfunded by $714 at December 31, 2023. Criteria: The Project’s regulatory agreement required monthly deposits of $3,541.49 be made into the replacement reserve account beginning in April 2023. Cause: Management did not update the financial institution on the increased deposit requirement. Effect: The replacement reserve account is underfunded at December 31, 2023, by $714. Recommendation: Management should deposit $714 into the replacement reserve account and ensure the monthly deposits are made in the correct amount. View of Responsible Officials: Management will transfer $714 to the replacement reserve account, will monitor the monthly replacement reserve deposits in the future, and will notify the financial institution of future increases.

U.S. Department of Housing and Urban Development Finding 2022.003, CFDA #14.155 Section 223(f) ? Insured Mortgage Condition: The Project did not properly file the audit package and data collection form submission with the Federal Audit Clearinghouse by the required deadline for the year ended December 31, 2021. Criteria: The Federal Audit Clearinghouse requites the Project to submit the audit package and data collection form the earlier of 30 days after receipt of the auditor?s report or 9 months after the end of the fiscal year. Cause: In testing the required report submission, we observed that the annual data collection form and audit report submission were not filed by the required due date. Effect: If the report submission is not filed by the required deadline, the Project is out of compliance with the terms and conditions of its Federal awards. Recommendation: We recommend the Project review its processes and procedures and develop a tracking spreadsheet to aid in monitoring reporting requirements and help ensure the deadlines are properly met. View of Responsible Officials: The Project will review its processes and procedures over reporting submissions required under its Federal awards and will submit the audit report and data collection form for the year ended December 31, 2022, within the required deadline.