Assistance Listing (Federal award identification number and year): Supportive Housing for the
Elderly, Assistance Listing 14.157 (073-EE032-NP-WAH and 1996)
Auditor non-compliance code: N-Reserve for Replacement Deposits
Finding resolution status: Outstanding
Universe population size: 12 months of deposits to the reserve for replacements
Sample size information: 12 months of deposits to the reserve for replacements
Statistically valid sample: Yes
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $14,000
Statement of condition 2023-001: The Corporation did not make all of the reserve for replacement
deposits as required by HUD for the year ended June 30, 2023.
Criteria: Pursuant to Section 2.6(c)(i) of the Regulatory Agreement, the Community is required to
make monthly deposits to the reserve for replacements fund.
Effect: The Corporation is not in compliance with the terms of Regulatory Agreement and the reserve
for replacements fund is underfunded by $14,000 at June 30, 2023.
Cause: Due to HUD delays in approving PRAC renewals, management did not have cash available to
make seven monthly deposits for the year ended June 30, 2023.
Recommendation: Management should transfer $14,000 from the operating cash account to the
reserve for replacement fund.
Management's response: Agree. On September 1, 2023, management transferred $10,000 from
the operating cash account to the reserve for replacement fund. Management will transfer the
remaining $4,000 from the operating account to the reserve for replacement fund as soon as possible.
Assistance Listing (Federal award identification number and year): Supportive Housing for the
Elderly, Assistance Listing 14.157 (073-EE032-NP-WAH and 1996)
Auditor non-compliance code: N-Reserve for Replacement Deposits
Finding resolution status: Outstanding
Universe population size: 12 months of deposits to the reserve for replacements
Sample size information: 12 months of deposits to the reserve for replacements
Statistically valid sample: Yes
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $14,000
Statement of condition 2023-001: The Corporation did not make all of the reserve for replacement
deposits as required by HUD for the year ended June 30, 2023.
Criteria: Pursuant to Section 2.6(c)(i) of the Regulatory Agreement, the Community is required to
make monthly deposits to the reserve for replacements fund.
Effect: The Corporation is not in compliance with the terms of Regulatory Agreement and the reserve
for replacements fund is underfunded by $14,000 at June 30, 2023.
Cause: Due to HUD delays in approving PRAC renewals, management did not have cash available to
make seven monthly deposits for the year ended June 30, 2023.
Recommendation: Management should transfer $14,000 from the operating cash account to the
reserve for replacement fund.
Management's response: Agree. On September 1, 2023, management transferred $10,000 from
the operating cash account to the reserve for replacement fund. Management will transfer the
remaining $4,000 from the operating account to the reserve for replacement fund as soon as possible.
Assistance Listing (Federal award identification number and year): Supportive Housing for the
Elderly, Assistance Listing 14.157 (073-EE032-NP-WAH and 1996)
Auditor non-compliance code: N-Reserve for Replacement Deposits
Finding resolution status: Outstanding
Universe population size: 12 months of deposits to the reserve for replacements
Sample size information: 12 months of deposits to the reserve for replacements
Statistically valid sample: Yes
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $14,000
Statement of condition 2023-001: The Corporation did not make all of the reserve for replacement
deposits as required by HUD for the year ended June 30, 2023.
Criteria: Pursuant to Section 2.6(c)(i) of the Regulatory Agreement, the Community is required to
make monthly deposits to the reserve for replacements fund.
Effect: The Corporation is not in compliance with the terms of Regulatory Agreement and the reserve
for replacements fund is underfunded by $14,000 at June 30, 2023.
Cause: Due to HUD delays in approving PRAC renewals, management did not have cash available to
make seven monthly deposits for the year ended June 30, 2023.
Recommendation: Management should transfer $14,000 from the operating cash account to the
reserve for replacement fund.
Management's response: Agree. On September 1, 2023, management transferred $10,000 from
the operating cash account to the reserve for replacement fund. Management will transfer the
remaining $4,000 from the operating account to the reserve for replacement fund as soon as possible.
Assistance Listing (Federal award identification number and year): Supportive Housing for the
Elderly, Assistance Listing 14.157 (073-EE032-NP-WAH and 1996)
Auditor non-compliance code: N-Reserve for Replacement Deposits
Finding resolution status: Outstanding
Universe population size: 12 months of deposits to the reserve for replacements
Sample size information: 12 months of deposits to the reserve for replacements
Statistically valid sample: Yes
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $14,000
Statement of condition 2023-001: The Corporation did not make all of the reserve for replacement
deposits as required by HUD for the year ended June 30, 2023.
Criteria: Pursuant to Section 2.6(c)(i) of the Regulatory Agreement, the Community is required to
make monthly deposits to the reserve for replacements fund.
Effect: The Corporation is not in compliance with the terms of Regulatory Agreement and the reserve
for replacements fund is underfunded by $14,000 at June 30, 2023.
Cause: Due to HUD delays in approving PRAC renewals, management did not have cash available to
make seven monthly deposits for the year ended June 30, 2023.
Recommendation: Management should transfer $14,000 from the operating cash account to the
reserve for replacement fund.
Management's response: Agree. On September 1, 2023, management transferred $10,000 from
the operating cash account to the reserve for replacement fund. Management will transfer the
remaining $4,000 from the operating account to the reserve for replacement fund as soon as possible.