Finding reference number: 2023-001
Assistance Listing (Federal award identification number and year): Supportive Housing for Persons with Disabilities, 14.181, 1995 (Project identification number 085-HD007)
Auditor non-compliance code: J - Unauthorized management fees
Finding resolution status: In process
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $9,696
Statement of condition 2023-001: For the year ended June 30, 2023, the Corporation did not have a HUD approved Project Owner's/Management Agent's Certification (HUD-9839-B).
Criteria: Pursuant to the regulatory agreement and HUD handbook 5381.5 REV-2, the Corporation's management agent must have an approved Project Owner's/Management Agent's Certification (HUD9839-B).
Effect: The Corporation is not in compliance with the regulatory agreement. Management fees should not be paid without an approved Project Owner's/Management Agent's Certification (HUD-9839-B).
Cause: The Property changed management agent's effective October 1, 2021 and HUD has not returned an executed Project Owner's/Management Agent's Certification (HUD-9839-B) to the new management agent.
Recommendation: Management should continue to request the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD. Management should not pay any management fees until the executed Project Owner's/Management Agent's Certification (HUD-9839-B) is received.
Completion date: June 30, 2024
Management's response: Agree. Management received email correspondence from HUD on August 12, 2021 that stated the Agent is approved to take over management immediately and the Project Owner's/Management Agent's Certification (HUD-9839-B) would be retroactively effective. Management has continued to seek the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD.
Finding reference number: 2023-002
Assistance Listing (Federal award identification number and year): Supportive Housing for Persons with Disabilities, 14.181, 1995 (Project identification number 085-HD007)
Auditor non-compliance code: N – Reserve for Replacements Deposits
Finding resolution status: Resolved
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The universe population size is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $598
Statement of condition 2023-002: The Corporation did not make the required monthly deposits to the reserve for replacements account. The reserve for replacements is underfunded by $598 as of June 30, 2023.
Criteria: Pursuant to the regulatory agreement, the Corporation is required to make monthly deposits
into a separate reserve for replacements account.
Effect: The Corporation is not in compliance with the terms of the regulatory agreement. The reserve
for replacements is underfunded by $598 as of June 30, 2023.
Cause: Management inadvertently omitted depositing funds in June 2023 in the amount of $598.
Recommendation: Management should deposit $598 into the reserve for replacement.
Completion date: September 1, 2023
Management's response: Management agrees with the finding and auditor's recommendation. On September 1, 2023, management transferred $598 to the reserve for replacements.
Finding reference number: 2023-001
Assistance Listing (Federal award identification number and year): Supportive Housing for Persons with Disabilities, 14.181, 1995 (Project identification number 085-HD007)
Auditor non-compliance code: J - Unauthorized management fees
Finding resolution status: In process
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $9,696
Statement of condition 2023-001: For the year ended June 30, 2023, the Corporation did not have a HUD approved Project Owner's/Management Agent's Certification (HUD-9839-B).
Criteria: Pursuant to the regulatory agreement and HUD handbook 5381.5 REV-2, the Corporation's management agent must have an approved Project Owner's/Management Agent's Certification (HUD9839-B).
Effect: The Corporation is not in compliance with the regulatory agreement. Management fees should not be paid without an approved Project Owner's/Management Agent's Certification (HUD-9839-B).
Cause: The Property changed management agent's effective October 1, 2021 and HUD has not returned an executed Project Owner's/Management Agent's Certification (HUD-9839-B) to the new management agent.
Recommendation: Management should continue to request the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD. Management should not pay any management fees until the executed Project Owner's/Management Agent's Certification (HUD-9839-B) is received.
Completion date: June 30, 2024
Management's response: Agree. Management received email correspondence from HUD on August 12, 2021 that stated the Agent is approved to take over management immediately and the Project Owner's/Management Agent's Certification (HUD-9839-B) would be retroactively effective. Management has continued to seek the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD.
Finding reference number: 2023-002
Assistance Listing (Federal award identification number and year): Supportive Housing for Persons with Disabilities, 14.181, 1995 (Project identification number 085-HD007)
Auditor non-compliance code: N – Reserve for Replacements Deposits
Finding resolution status: Resolved
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The universe population size is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $598
Statement of condition 2023-002: The Corporation did not make the required monthly deposits to the reserve for replacements account. The reserve for replacements is underfunded by $598 as of June 30, 2023.
Criteria: Pursuant to the regulatory agreement, the Corporation is required to make monthly deposits
into a separate reserve for replacements account.
Effect: The Corporation is not in compliance with the terms of the regulatory agreement. The reserve
for replacements is underfunded by $598 as of June 30, 2023.
Cause: Management inadvertently omitted depositing funds in June 2023 in the amount of $598.
Recommendation: Management should deposit $598 into the reserve for replacement.
Completion date: September 1, 2023
Management's response: Management agrees with the finding and auditor's recommendation. On September 1, 2023, management transferred $598 to the reserve for replacements.
Finding reference number: 2023-001
Assistance Listing (Federal award identification number and year): Supportive Housing for Persons with Disabilities, 14.181, 1995 (Project identification number 085-HD007)
Auditor non-compliance code: J - Unauthorized management fees
Finding resolution status: In process
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $9,696
Statement of condition 2023-001: For the year ended June 30, 2023, the Corporation did not have a HUD approved Project Owner's/Management Agent's Certification (HUD-9839-B).
Criteria: Pursuant to the regulatory agreement and HUD handbook 5381.5 REV-2, the Corporation's management agent must have an approved Project Owner's/Management Agent's Certification (HUD9839-B).
Effect: The Corporation is not in compliance with the regulatory agreement. Management fees should not be paid without an approved Project Owner's/Management Agent's Certification (HUD-9839-B).
Cause: The Property changed management agent's effective October 1, 2021 and HUD has not returned an executed Project Owner's/Management Agent's Certification (HUD-9839-B) to the new management agent.
Recommendation: Management should continue to request the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD. Management should not pay any management fees until the executed Project Owner's/Management Agent's Certification (HUD-9839-B) is received.
Completion date: June 30, 2024
Management's response: Agree. Management received email correspondence from HUD on August 12, 2021 that stated the Agent is approved to take over management immediately and the Project Owner's/Management Agent's Certification (HUD-9839-B) would be retroactively effective. Management has continued to seek the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD.
Finding reference number: 2023-002
Assistance Listing (Federal award identification number and year): Supportive Housing for Persons with Disabilities, 14.181, 1995 (Project identification number 085-HD007)
Auditor non-compliance code: N – Reserve for Replacements Deposits
Finding resolution status: Resolved
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The universe population size is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $598
Statement of condition 2023-002: The Corporation did not make the required monthly deposits to the reserve for replacements account. The reserve for replacements is underfunded by $598 as of June 30, 2023.
Criteria: Pursuant to the regulatory agreement, the Corporation is required to make monthly deposits
into a separate reserve for replacements account.
Effect: The Corporation is not in compliance with the terms of the regulatory agreement. The reserve
for replacements is underfunded by $598 as of June 30, 2023.
Cause: Management inadvertently omitted depositing funds in June 2023 in the amount of $598.
Recommendation: Management should deposit $598 into the reserve for replacement.
Completion date: September 1, 2023
Management's response: Management agrees with the finding and auditor's recommendation. On September 1, 2023, management transferred $598 to the reserve for replacements.
Finding reference number: 2023-001
Assistance Listing (Federal award identification number and year): Supportive Housing for Persons with Disabilities, 14.181, 1995 (Project identification number 085-HD007)
Auditor non-compliance code: J - Unauthorized management fees
Finding resolution status: In process
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $9,696
Statement of condition 2023-001: For the year ended June 30, 2023, the Corporation did not have a HUD approved Project Owner's/Management Agent's Certification (HUD-9839-B).
Criteria: Pursuant to the regulatory agreement and HUD handbook 5381.5 REV-2, the Corporation's management agent must have an approved Project Owner's/Management Agent's Certification (HUD9839-B).
Effect: The Corporation is not in compliance with the regulatory agreement. Management fees should not be paid without an approved Project Owner's/Management Agent's Certification (HUD-9839-B).
Cause: The Property changed management agent's effective October 1, 2021 and HUD has not returned an executed Project Owner's/Management Agent's Certification (HUD-9839-B) to the new management agent.
Recommendation: Management should continue to request the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD. Management should not pay any management fees until the executed Project Owner's/Management Agent's Certification (HUD-9839-B) is received.
Completion date: June 30, 2024
Management's response: Agree. Management received email correspondence from HUD on August 12, 2021 that stated the Agent is approved to take over management immediately and the Project Owner's/Management Agent's Certification (HUD-9839-B) would be retroactively effective. Management has continued to seek the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD.
Finding reference number: 2023-002
Assistance Listing (Federal award identification number and year): Supportive Housing for Persons with Disabilities, 14.181, 1995 (Project identification number 085-HD007)
Auditor non-compliance code: N – Reserve for Replacements Deposits
Finding resolution status: Resolved
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The universe population size is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $598
Statement of condition 2023-002: The Corporation did not make the required monthly deposits to the reserve for replacements account. The reserve for replacements is underfunded by $598 as of June 30, 2023.
Criteria: Pursuant to the regulatory agreement, the Corporation is required to make monthly deposits
into a separate reserve for replacements account.
Effect: The Corporation is not in compliance with the terms of the regulatory agreement. The reserve
for replacements is underfunded by $598 as of June 30, 2023.
Cause: Management inadvertently omitted depositing funds in June 2023 in the amount of $598.
Recommendation: Management should deposit $598 into the reserve for replacement.
Completion date: September 1, 2023
Management's response: Management agrees with the finding and auditor's recommendation. On September 1, 2023, management transferred $598 to the reserve for replacements.