Title: Note 3:
Accounting Policies: The schedule of expenditures of federal awards is prepared on the accrual basis of accounting.
De Minimis Rate Used: N
Rate Explanation: The Corporation has elected to not use the 10% de minimis cost rate.
The balance of the HUD 811 capital advance at December 31, 2023 is $2,534,900.
Assistance Listing title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, Assistance Listing No. 14.181 (044-HD065 and 2014)
Auditor non-compliance code: N-Reserve for Replacement 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: $639
Statement of condition #2023-001: At December 31, 2023, deposits to the reserve for replacements funds of $639 had not been made.
Criteria: Pursuant to the Section 5(a) of the Regulatory Agreement, the Corporation shall deposit $639 per month to the reserve for replacements fund.
Effect: The Corporation is not in compliance with the terms of the Regulatory Agreement and the reserve for replacements fund is underfunded by $639 at December 31, 2023.
Cause: The Corporation did not receive two months of PRAC during 2023 that resulted in the October 2023 reserve for replacements deposit not being made.
Recommendation: Management should transfer $639 from the operating account to the reserve for replacements fund.
Management's response: Agree. Management did not receive two months of PRAC funds during the year. Management transferred $639 from the operating account to the reserve for replacements fund in January 2024.
Assistance Listing title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, Assistance Listing No. 14.181 (044-HD065 and 2014)
Auditor non-compliance code: N-Reserve for Replacement 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: $639
Statement of condition #2023-001: At December 31, 2023, deposits to the reserve for replacements funds of $639 had not been made.
Criteria: Pursuant to the Section 5(a) of the Regulatory Agreement, the Corporation shall deposit $639 per month to the reserve for replacements fund.
Effect: The Corporation is not in compliance with the terms of the Regulatory Agreement and the reserve for replacements fund is underfunded by $639 at December 31, 2023.
Cause: The Corporation did not receive two months of PRAC during 2023 that resulted in the October 2023 reserve for replacements deposit not being made.
Recommendation: Management should transfer $639 from the operating account to the reserve for replacements fund.
Management's response: Agree. Management did not receive two months of PRAC funds during the year. Management transferred $639 from the operating account to the reserve for replacements fund in January 2024.
Assistance Listing title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, Assistance Listing No. 14.181 (044-HD065 and 2014)
Auditor non-compliance code: N-Reserve for Replacement 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: $639
Statement of condition #2023-001: At December 31, 2023, deposits to the reserve for replacements funds of $639 had not been made.
Criteria: Pursuant to the Section 5(a) of the Regulatory Agreement, the Corporation shall deposit $639 per month to the reserve for replacements fund.
Effect: The Corporation is not in compliance with the terms of the Regulatory Agreement and the reserve for replacements fund is underfunded by $639 at December 31, 2023.
Cause: The Corporation did not receive two months of PRAC during 2023 that resulted in the October 2023 reserve for replacements deposit not being made.
Recommendation: Management should transfer $639 from the operating account to the reserve for replacements fund.
Management's response: Agree. Management did not receive two months of PRAC funds during the year. Management transferred $639 from the operating account to the reserve for replacements fund in January 2024.
Assistance Listing title and number (Federal award identification number and year): Supportive Housing for Persons with Disabilities, Assistance Listing No. 14.181 (044-HD065 and 2014)
Auditor non-compliance code: N-Reserve for Replacement 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: $639
Statement of condition #2023-001: At December 31, 2023, deposits to the reserve for replacements funds of $639 had not been made.
Criteria: Pursuant to the Section 5(a) of the Regulatory Agreement, the Corporation shall deposit $639 per month to the reserve for replacements fund.
Effect: The Corporation is not in compliance with the terms of the Regulatory Agreement and the reserve for replacements fund is underfunded by $639 at December 31, 2023.
Cause: The Corporation did not receive two months of PRAC during 2023 that resulted in the October 2023 reserve for replacements deposit not being made.
Recommendation: Management should transfer $639 from the operating account to the reserve for replacements fund.
Management's response: Agree. Management did not receive two months of PRAC funds during the year. Management transferred $639 from the operating account to the reserve for replacements fund in January 2024.