Finding 2023-001: Supportive Housing for the Elderly (Section 202), Federal Assistance Listing Number 14.157
Criteria: Per the regulatory agreement, Lucille Manor Apartments is required to make monthly deposits of $955 into a reserve fund for replacements.
Condition: The reserve for replacements account was underfunded by $955 (one month’s payment) as of June 30, 2023.
Context: We reviewed the deposits into the reserve for replacements during the year.
Cause: Lucille Manor Apartments lacked adequate cash flow in 2023 to make all required deposits as the HUD tenant assistance payments were delayed with the renewal of the Project Rental Assistance Contract.
Effect: Lucille Manor Apartments was not in compliance with the regulatory agreement.
Recommendation: We recommend that Lucille Manor Apartments make the remaining $955 deposit into the reserve for replacements when cash flow is sufficient.
Views of management and planned corrective action: Lucille Manor Apartments agrees with the finding and the required payment was made in July 2023.
Finding 2023-002: Supportive Housing for the Elderly (Section 202), Federal Assistance Listing Number 14.157
Criteria: Lucille Manor Apartments is required to determine surplus cash requirements annually. If surplus cash exists, the amount must be transferred from the operating account to the residual receipts account within 60 days of the Project’s fiscal year-end.
Condition: The required deposit of $1,556 for the year ended June 30, 2022 was made 31 days after the 60 day deadline.
Context: We reviewed the residual receipts deposits during the year.
Cause: Lucille Manor Apartments’ surplus cash was not performed timely.
Effect: Lucille Manor Apartments is not in compliance with the HUD Regulatory Agreement as it relates to the management of the residual receipts reserve.
Recommendation: Lucille Manor Apartments should ensure residual receipts are made within 60 days of year-end in accordance with the HUD Regulatory Agreement.
Views of management and planned corrective action: Lucille Manor Apartments agrees with the finding and the required payment was made in September 2022.
Finding 2023-001: Supportive Housing for the Elderly (Section 202), Federal Assistance Listing Number 14.157
Criteria: Per the regulatory agreement, Lucille Manor Apartments is required to make monthly deposits of $955 into a reserve fund for replacements.
Condition: The reserve for replacements account was underfunded by $955 (one month’s payment) as of June 30, 2023.
Context: We reviewed the deposits into the reserve for replacements during the year.
Cause: Lucille Manor Apartments lacked adequate cash flow in 2023 to make all required deposits as the HUD tenant assistance payments were delayed with the renewal of the Project Rental Assistance Contract.
Effect: Lucille Manor Apartments was not in compliance with the regulatory agreement.
Recommendation: We recommend that Lucille Manor Apartments make the remaining $955 deposit into the reserve for replacements when cash flow is sufficient.
Views of management and planned corrective action: Lucille Manor Apartments agrees with the finding and the required payment was made in July 2023.
Finding 2023-002: Supportive Housing for the Elderly (Section 202), Federal Assistance Listing Number 14.157
Criteria: Lucille Manor Apartments is required to determine surplus cash requirements annually. If surplus cash exists, the amount must be transferred from the operating account to the residual receipts account within 60 days of the Project’s fiscal year-end.
Condition: The required deposit of $1,556 for the year ended June 30, 2022 was made 31 days after the 60 day deadline.
Context: We reviewed the residual receipts deposits during the year.
Cause: Lucille Manor Apartments’ surplus cash was not performed timely.
Effect: Lucille Manor Apartments is not in compliance with the HUD Regulatory Agreement as it relates to the management of the residual receipts reserve.
Recommendation: Lucille Manor Apartments should ensure residual receipts are made within 60 days of year-end in accordance with the HUD Regulatory Agreement.
Views of management and planned corrective action: Lucille Manor Apartments agrees with the finding and the required payment was made in September 2022.
Finding 2023-001: Supportive Housing for the Elderly (Section 202), Federal Assistance Listing Number 14.157
Criteria: Per the regulatory agreement, Lucille Manor Apartments is required to make monthly deposits of $955 into a reserve fund for replacements.
Condition: The reserve for replacements account was underfunded by $955 (one month’s payment) as of June 30, 2023.
Context: We reviewed the deposits into the reserve for replacements during the year.
Cause: Lucille Manor Apartments lacked adequate cash flow in 2023 to make all required deposits as the HUD tenant assistance payments were delayed with the renewal of the Project Rental Assistance Contract.
Effect: Lucille Manor Apartments was not in compliance with the regulatory agreement.
Recommendation: We recommend that Lucille Manor Apartments make the remaining $955 deposit into the reserve for replacements when cash flow is sufficient.
Views of management and planned corrective action: Lucille Manor Apartments agrees with the finding and the required payment was made in July 2023.
Finding 2023-002: Supportive Housing for the Elderly (Section 202), Federal Assistance Listing Number 14.157
Criteria: Lucille Manor Apartments is required to determine surplus cash requirements annually. If surplus cash exists, the amount must be transferred from the operating account to the residual receipts account within 60 days of the Project’s fiscal year-end.
Condition: The required deposit of $1,556 for the year ended June 30, 2022 was made 31 days after the 60 day deadline.
Context: We reviewed the residual receipts deposits during the year.
Cause: Lucille Manor Apartments’ surplus cash was not performed timely.
Effect: Lucille Manor Apartments is not in compliance with the HUD Regulatory Agreement as it relates to the management of the residual receipts reserve.
Recommendation: Lucille Manor Apartments should ensure residual receipts are made within 60 days of year-end in accordance with the HUD Regulatory Agreement.
Views of management and planned corrective action: Lucille Manor Apartments agrees with the finding and the required payment was made in September 2022.
Finding 2023-001: Supportive Housing for the Elderly (Section 202), Federal Assistance Listing Number 14.157
Criteria: Per the regulatory agreement, Lucille Manor Apartments is required to make monthly deposits of $955 into a reserve fund for replacements.
Condition: The reserve for replacements account was underfunded by $955 (one month’s payment) as of June 30, 2023.
Context: We reviewed the deposits into the reserve for replacements during the year.
Cause: Lucille Manor Apartments lacked adequate cash flow in 2023 to make all required deposits as the HUD tenant assistance payments were delayed with the renewal of the Project Rental Assistance Contract.
Effect: Lucille Manor Apartments was not in compliance with the regulatory agreement.
Recommendation: We recommend that Lucille Manor Apartments make the remaining $955 deposit into the reserve for replacements when cash flow is sufficient.
Views of management and planned corrective action: Lucille Manor Apartments agrees with the finding and the required payment was made in July 2023.
Finding 2023-002: Supportive Housing for the Elderly (Section 202), Federal Assistance Listing Number 14.157
Criteria: Lucille Manor Apartments is required to determine surplus cash requirements annually. If surplus cash exists, the amount must be transferred from the operating account to the residual receipts account within 60 days of the Project’s fiscal year-end.
Condition: The required deposit of $1,556 for the year ended June 30, 2022 was made 31 days after the 60 day deadline.
Context: We reviewed the residual receipts deposits during the year.
Cause: Lucille Manor Apartments’ surplus cash was not performed timely.
Effect: Lucille Manor Apartments is not in compliance with the HUD Regulatory Agreement as it relates to the management of the residual receipts reserve.
Recommendation: Lucille Manor Apartments should ensure residual receipts are made within 60 days of year-end in accordance with the HUD Regulatory Agreement.
Views of management and planned corrective action: Lucille Manor Apartments agrees with the finding and the required payment was made in September 2022.