Finding reference number: 2022-001
Assistance Listing (Federal award identification number and year): Supportive Housing for
the Elderly, Assistance Listing No. 14.157, 2001
Auditor non-compliance code: B – Failure to make required residual receipts deposit
Finding resolution status: Resolved
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.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $33,484
Statement of condition 2022-001: The Corporation's required deposit of $33,484 to the residual
receipts account per the December 31, 2021 Computation of Surplus Cash, Distributions and Residual
Receipts was not deposited within 90 days of the fiscal year end.
Criteria: Pursuant to the HUD regulatory agreement, surplus cash is required to be deposited into a
separate residual receipts fund within 90 days after the fiscal period ends.
Effect: The Corporation is not in compliance with terms of the Regulatory Agreement.
Cause: This was an oversight by management.
Recommendation: Management should make all required residual receipt deposits per the annual
Computation of Surplus Cash, Distributions and Residual Receipts within 90 days after fiscal year end.
Management's response: Management concurs with the finding and the auditor's recommendation.
Management deposited $33,484 into the residual receipts fund on June 13, 2022. No further action is
required.
Finding reference number: 2022-002
Assistance Listing (Federal award identification number and year): Supportive Housing for
the Elderly, Assistance Listing No. 14.157, 2001
Auditor non-compliance code: H – Unauthorized distribution of project assets
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.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $16,742
Statement of condition 2022-002: The Corporation made a payment to LAHD in the amount of
$16,742. The payment does not meet HUD's criteria of eligible Property expenses and the Corporation
did not obtain HUD approval.
Criteria: The Corporation shall not without the written approval of HUD disburse or payout any funds
except for operation of the Property as provided in the Regulatory and Capital Advance Agreement. In
accordance with the applicable agreements, the annual payments to LAHD are required to be paid
from entity sources with prior approval from HUD.
Effect: The Corporation is not in compliance with terms of the Regulatory Agreement and the
Property's operating account is underfunded by $16,742.
Cause: The Corporation was billed by LAHD and processed the payment without prior approval from
HUD.
Recommendation: The Corporation should request HUD approval for reimbursement from the
residual receipts fund and deposit into the Property's operating account.
Management's response: Management concurs with the finding and the auditor's recommendation.
Management has requested approval from HUD. As of the report date, no response has been received.
Finding reference number: 2022-003
Assistance Listing (Federal award identification number and year): Supportive Housing for
the Elderly, Assistance Listing No. 14.157, 2001
Auditor non-compliance code: Z - Other
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.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition 2022-003: The Corporation was unable to furnish the entity's approved
Affirmative Fair Housing Marketing Plan.
Criteria: Pursuant to the Regulatory Agreement and HUD Handbook, owners of HUD insured and
assisted multifamily housing projects must submit an Affirmative Fair Housing Marketing Plan to HUD
for approval.
Effect: The Corporation is not in compliance with terms of the Regulatory Agreement and HUD
Handbook.
Cause: Management did not retain the approved Affirmative Fair Housing Marketing Plan within their
permanent files.
Recommendation: The Corporation should request the filed Affirmative Fair Housing Marketing Plan
from HUD or submit a new version for approval.
Management's response: Management concurs with the finding and the auditor's recommendation.
Management has requested the form from HUD. As of the report date, no response has been received.
Finding reference number: 2022-001
Assistance Listing (Federal award identification number and year): Supportive Housing for
the Elderly, Assistance Listing No. 14.157, 2001
Auditor non-compliance code: B – Failure to make required residual receipts deposit
Finding resolution status: Resolved
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.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $33,484
Statement of condition 2022-001: The Corporation's required deposit of $33,484 to the residual
receipts account per the December 31, 2021 Computation of Surplus Cash, Distributions and Residual
Receipts was not deposited within 90 days of the fiscal year end.
Criteria: Pursuant to the HUD regulatory agreement, surplus cash is required to be deposited into a
separate residual receipts fund within 90 days after the fiscal period ends.
Effect: The Corporation is not in compliance with terms of the Regulatory Agreement.
Cause: This was an oversight by management.
Recommendation: Management should make all required residual receipt deposits per the annual
Computation of Surplus Cash, Distributions and Residual Receipts within 90 days after fiscal year end.
Management's response: Management concurs with the finding and the auditor's recommendation.
Management deposited $33,484 into the residual receipts fund on June 13, 2022. No further action is
required.
Finding reference number: 2022-002
Assistance Listing (Federal award identification number and year): Supportive Housing for
the Elderly, Assistance Listing No. 14.157, 2001
Auditor non-compliance code: H – Unauthorized distribution of project assets
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.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $16,742
Statement of condition 2022-002: The Corporation made a payment to LAHD in the amount of
$16,742. The payment does not meet HUD's criteria of eligible Property expenses and the Corporation
did not obtain HUD approval.
Criteria: The Corporation shall not without the written approval of HUD disburse or payout any funds
except for operation of the Property as provided in the Regulatory and Capital Advance Agreement. In
accordance with the applicable agreements, the annual payments to LAHD are required to be paid
from entity sources with prior approval from HUD.
Effect: The Corporation is not in compliance with terms of the Regulatory Agreement and the
Property's operating account is underfunded by $16,742.
Cause: The Corporation was billed by LAHD and processed the payment without prior approval from
HUD.
Recommendation: The Corporation should request HUD approval for reimbursement from the
residual receipts fund and deposit into the Property's operating account.
Management's response: Management concurs with the finding and the auditor's recommendation.
Management has requested approval from HUD. As of the report date, no response has been received.
Finding reference number: 2022-003
Assistance Listing (Federal award identification number and year): Supportive Housing for
the Elderly, Assistance Listing No. 14.157, 2001
Auditor non-compliance code: Z - Other
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.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition 2022-003: The Corporation was unable to furnish the entity's approved
Affirmative Fair Housing Marketing Plan.
Criteria: Pursuant to the Regulatory Agreement and HUD Handbook, owners of HUD insured and
assisted multifamily housing projects must submit an Affirmative Fair Housing Marketing Plan to HUD
for approval.
Effect: The Corporation is not in compliance with terms of the Regulatory Agreement and HUD
Handbook.
Cause: Management did not retain the approved Affirmative Fair Housing Marketing Plan within their
permanent files.
Recommendation: The Corporation should request the filed Affirmative Fair Housing Marketing Plan
from HUD or submit a new version for approval.
Management's response: Management concurs with the finding and the auditor's recommendation.
Management has requested the form from HUD. As of the report date, no response has been received.
Finding reference number: 2022-001
Assistance Listing (Federal award identification number and year): Supportive Housing for
the Elderly, Assistance Listing No. 14.157, 2001
Auditor non-compliance code: B – Failure to make required residual receipts deposit
Finding resolution status: Resolved
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.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $33,484
Statement of condition 2022-001: The Corporation's required deposit of $33,484 to the residual
receipts account per the December 31, 2021 Computation of Surplus Cash, Distributions and Residual
Receipts was not deposited within 90 days of the fiscal year end.
Criteria: Pursuant to the HUD regulatory agreement, surplus cash is required to be deposited into a
separate residual receipts fund within 90 days after the fiscal period ends.
Effect: The Corporation is not in compliance with terms of the Regulatory Agreement.
Cause: This was an oversight by management.
Recommendation: Management should make all required residual receipt deposits per the annual
Computation of Surplus Cash, Distributions and Residual Receipts within 90 days after fiscal year end.
Management's response: Management concurs with the finding and the auditor's recommendation.
Management deposited $33,484 into the residual receipts fund on June 13, 2022. No further action is
required.
Finding reference number: 2022-002
Assistance Listing (Federal award identification number and year): Supportive Housing for
the Elderly, Assistance Listing No. 14.157, 2001
Auditor non-compliance code: H – Unauthorized distribution of project assets
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.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $16,742
Statement of condition 2022-002: The Corporation made a payment to LAHD in the amount of
$16,742. The payment does not meet HUD's criteria of eligible Property expenses and the Corporation
did not obtain HUD approval.
Criteria: The Corporation shall not without the written approval of HUD disburse or payout any funds
except for operation of the Property as provided in the Regulatory and Capital Advance Agreement. In
accordance with the applicable agreements, the annual payments to LAHD are required to be paid
from entity sources with prior approval from HUD.
Effect: The Corporation is not in compliance with terms of the Regulatory Agreement and the
Property's operating account is underfunded by $16,742.
Cause: The Corporation was billed by LAHD and processed the payment without prior approval from
HUD.
Recommendation: The Corporation should request HUD approval for reimbursement from the
residual receipts fund and deposit into the Property's operating account.
Management's response: Management concurs with the finding and the auditor's recommendation.
Management has requested approval from HUD. As of the report date, no response has been received.
Finding reference number: 2022-003
Assistance Listing (Federal award identification number and year): Supportive Housing for
the Elderly, Assistance Listing No. 14.157, 2001
Auditor non-compliance code: Z - Other
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.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition 2022-003: The Corporation was unable to furnish the entity's approved
Affirmative Fair Housing Marketing Plan.
Criteria: Pursuant to the Regulatory Agreement and HUD Handbook, owners of HUD insured and
assisted multifamily housing projects must submit an Affirmative Fair Housing Marketing Plan to HUD
for approval.
Effect: The Corporation is not in compliance with terms of the Regulatory Agreement and HUD
Handbook.
Cause: Management did not retain the approved Affirmative Fair Housing Marketing Plan within their
permanent files.
Recommendation: The Corporation should request the filed Affirmative Fair Housing Marketing Plan
from HUD or submit a new version for approval.
Management's response: Management concurs with the finding and the auditor's recommendation.
Management has requested the form from HUD. As of the report date, no response has been received.
Finding reference number: 2022-001
Assistance Listing (Federal award identification number and year): Supportive Housing for
the Elderly, Assistance Listing No. 14.157, 2001
Auditor non-compliance code: B – Failure to make required residual receipts deposit
Finding resolution status: Resolved
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.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $33,484
Statement of condition 2022-001: The Corporation's required deposit of $33,484 to the residual
receipts account per the December 31, 2021 Computation of Surplus Cash, Distributions and Residual
Receipts was not deposited within 90 days of the fiscal year end.
Criteria: Pursuant to the HUD regulatory agreement, surplus cash is required to be deposited into a
separate residual receipts fund within 90 days after the fiscal period ends.
Effect: The Corporation is not in compliance with terms of the Regulatory Agreement.
Cause: This was an oversight by management.
Recommendation: Management should make all required residual receipt deposits per the annual
Computation of Surplus Cash, Distributions and Residual Receipts within 90 days after fiscal year end.
Management's response: Management concurs with the finding and the auditor's recommendation.
Management deposited $33,484 into the residual receipts fund on June 13, 2022. No further action is
required.
Finding reference number: 2022-002
Assistance Listing (Federal award identification number and year): Supportive Housing for
the Elderly, Assistance Listing No. 14.157, 2001
Auditor non-compliance code: H – Unauthorized distribution of project assets
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.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $16,742
Statement of condition 2022-002: The Corporation made a payment to LAHD in the amount of
$16,742. The payment does not meet HUD's criteria of eligible Property expenses and the Corporation
did not obtain HUD approval.
Criteria: The Corporation shall not without the written approval of HUD disburse or payout any funds
except for operation of the Property as provided in the Regulatory and Capital Advance Agreement. In
accordance with the applicable agreements, the annual payments to LAHD are required to be paid
from entity sources with prior approval from HUD.
Effect: The Corporation is not in compliance with terms of the Regulatory Agreement and the
Property's operating account is underfunded by $16,742.
Cause: The Corporation was billed by LAHD and processed the payment without prior approval from
HUD.
Recommendation: The Corporation should request HUD approval for reimbursement from the
residual receipts fund and deposit into the Property's operating account.
Management's response: Management concurs with the finding and the auditor's recommendation.
Management has requested approval from HUD. As of the report date, no response has been received.
Finding reference number: 2022-003
Assistance Listing (Federal award identification number and year): Supportive Housing for
the Elderly, Assistance Listing No. 14.157, 2001
Auditor non-compliance code: Z - Other
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.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of condition 2022-003: The Corporation was unable to furnish the entity's approved
Affirmative Fair Housing Marketing Plan.
Criteria: Pursuant to the Regulatory Agreement and HUD Handbook, owners of HUD insured and
assisted multifamily housing projects must submit an Affirmative Fair Housing Marketing Plan to HUD
for approval.
Effect: The Corporation is not in compliance with terms of the Regulatory Agreement and HUD
Handbook.
Cause: Management did not retain the approved Affirmative Fair Housing Marketing Plan within their
permanent files.
Recommendation: The Corporation should request the filed Affirmative Fair Housing Marketing Plan
from HUD or submit a new version for approval.
Management's response: Management concurs with the finding and the auditor's recommendation.
Management has requested the form from HUD. As of the report date, no response has been received.