Finding reference number: 2024-001
Assistance Listing (Federal award identification number and year): Section 202 Supportive
Housing for the Elderly (Project identification number 044-EE057 and 2001)
Auditor non-compliance code: N- Reserve for Replacements Deposits
Finding resolution status: Outstanding
Universe population size: The universal 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: $14,357
Statement of condition 2024-001: At June 30, 2024, deposits to the reserve for replacements
account of $14,357 had not been made.
Criteria: Pursuant to the regulatory agreement, the Property is required to make monthly deposits
to the reserve for replacements fund as required by HUD. At June 30, 2024, $14,357 of the required
deposits had not been made.
Effect: The Corporation is not in compliance with the regulatory agreement. The reserve for
replacements is underfunded by $14,357 at June 30, 2024.
Cause: The Corporation did not make the required deposits to the reserve for replacements in order
to manage the Property's operating cash flow.
Recommendation: Management should transfer $14,357 to the reserve for replacements.
Management's response: Agree. Management will transfer $14,357 to the reserve for replacements
once the Property has sufficient operating cash to make the required transfer.
Finding reference number: 2024-001
Assistance Listing (Federal award identification number and year): Section 202 Supportive
Housing for the Elderly (Project identification number 044-EE057 and 2001)
Auditor non-compliance code: N- Reserve for Replacements Deposits
Finding resolution status: Outstanding
Universe population size: The universal 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: $14,357
Statement of condition 2024-001: At June 30, 2024, deposits to the reserve for replacements
account of $14,357 had not been made.
Criteria: Pursuant to the regulatory agreement, the Property is required to make monthly deposits
to the reserve for replacements fund as required by HUD. At June 30, 2024, $14,357 of the required
deposits had not been made.
Effect: The Corporation is not in compliance with the regulatory agreement. The reserve for
replacements is underfunded by $14,357 at June 30, 2024.
Cause: The Corporation did not make the required deposits to the reserve for replacements in order
to manage the Property's operating cash flow.
Recommendation: Management should transfer $14,357 to the reserve for replacements.
Management's response: Agree. Management will transfer $14,357 to the reserve for replacements
once the Property has sufficient operating cash to make the required transfer.
Finding reference number: 2024-002
Assistance Listing (Federal award identification number and year): Section 202 Supportive
Housing for the Elderly (Project identification number 044-EE057 and 2001)
Auditor non-compliance code: N- Unauthorized distribution of project assets
Finding resolution status: Outstanding
Universe population size: The universal 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: $14,210
Statement of condition 2024-001: During the year ended June 30, 2024, the Corporation made
additional principal payments on the note payable of $33,799, which was in excess of surplus cash
calculated at June 30, 2023 by $14,210.
Criteria: In accordance with HUD approval for the note payable, dated April 15, 2016, the Corporation
may only make monthly payments of $3,627.34 and additional payments based on surplus cash
calculated annually. Any unauthorized payments shall be returned to the Corporation.
Effect: The Corporation is not in compliance with the HUD requirements. At June 30, 2024, the
Property's operating account is underfunded by $14,210. This amount has been considered in the
computation of surplus cash, distributions and residual receipts at June 30, 2024.
Cause: Management inadvertently made payments on the note based on surplus cash calculated in
prior years.
Recommendation: AHEPA 371, Inc. should reimburse the Property's operating account in the amount
of $14,210.
Management's response: Agree. AHEPA 371, Inc. will reimburse the Property's operating account.
Finding reference number: 2024-002
Assistance Listing (Federal award identification number and year): Section 202 Supportive
Housing for the Elderly (Project identification number 044-EE057 and 2001)
Auditor non-compliance code: N- Unauthorized distribution of project assets
Finding resolution status: Outstanding
Universe population size: The universal 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: $14,210
Statement of condition 2024-001: During the year ended June 30, 2024, the Corporation made
additional principal payments on the note payable of $33,799, which was in excess of surplus cash
calculated at June 30, 2023 by $14,210.
Criteria: In accordance with HUD approval for the note payable, dated April 15, 2016, the Corporation
may only make monthly payments of $3,627.34 and additional payments based on surplus cash
calculated annually. Any unauthorized payments shall be returned to the Corporation.
Effect: The Corporation is not in compliance with the HUD requirements. At June 30, 2024, the
Property's operating account is underfunded by $14,210. This amount has been considered in the
computation of surplus cash, distributions and residual receipts at June 30, 2024.
Cause: Management inadvertently made payments on the note based on surplus cash calculated in
prior years.
Recommendation: AHEPA 371, Inc. should reimburse the Property's operating account in the amount
of $14,210.
Management's response: Agree. AHEPA 371, Inc. will reimburse the Property's operating account.
Finding reference number: 2024-001
Assistance Listing (Federal award identification number and year): Section 202 Supportive
Housing for the Elderly (Project identification number 044-EE057 and 2001)
Auditor non-compliance code: N- Reserve for Replacements Deposits
Finding resolution status: Outstanding
Universe population size: The universal 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: $14,357
Statement of condition 2024-001: At June 30, 2024, deposits to the reserve for replacements
account of $14,357 had not been made.
Criteria: Pursuant to the regulatory agreement, the Property is required to make monthly deposits
to the reserve for replacements fund as required by HUD. At June 30, 2024, $14,357 of the required
deposits had not been made.
Effect: The Corporation is not in compliance with the regulatory agreement. The reserve for
replacements is underfunded by $14,357 at June 30, 2024.
Cause: The Corporation did not make the required deposits to the reserve for replacements in order
to manage the Property's operating cash flow.
Recommendation: Management should transfer $14,357 to the reserve for replacements.
Management's response: Agree. Management will transfer $14,357 to the reserve for replacements
once the Property has sufficient operating cash to make the required transfer.
Finding reference number: 2024-001
Assistance Listing (Federal award identification number and year): Section 202 Supportive
Housing for the Elderly (Project identification number 044-EE057 and 2001)
Auditor non-compliance code: N- Reserve for Replacements Deposits
Finding resolution status: Outstanding
Universe population size: The universal 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: $14,357
Statement of condition 2024-001: At June 30, 2024, deposits to the reserve for replacements
account of $14,357 had not been made.
Criteria: Pursuant to the regulatory agreement, the Property is required to make monthly deposits
to the reserve for replacements fund as required by HUD. At June 30, 2024, $14,357 of the required
deposits had not been made.
Effect: The Corporation is not in compliance with the regulatory agreement. The reserve for
replacements is underfunded by $14,357 at June 30, 2024.
Cause: The Corporation did not make the required deposits to the reserve for replacements in order
to manage the Property's operating cash flow.
Recommendation: Management should transfer $14,357 to the reserve for replacements.
Management's response: Agree. Management will transfer $14,357 to the reserve for replacements
once the Property has sufficient operating cash to make the required transfer.
Finding reference number: 2024-002
Assistance Listing (Federal award identification number and year): Section 202 Supportive
Housing for the Elderly (Project identification number 044-EE057 and 2001)
Auditor non-compliance code: N- Unauthorized distribution of project assets
Finding resolution status: Outstanding
Universe population size: The universal 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: $14,210
Statement of condition 2024-001: During the year ended June 30, 2024, the Corporation made
additional principal payments on the note payable of $33,799, which was in excess of surplus cash
calculated at June 30, 2023 by $14,210.
Criteria: In accordance with HUD approval for the note payable, dated April 15, 2016, the Corporation
may only make monthly payments of $3,627.34 and additional payments based on surplus cash
calculated annually. Any unauthorized payments shall be returned to the Corporation.
Effect: The Corporation is not in compliance with the HUD requirements. At June 30, 2024, the
Property's operating account is underfunded by $14,210. This amount has been considered in the
computation of surplus cash, distributions and residual receipts at June 30, 2024.
Cause: Management inadvertently made payments on the note based on surplus cash calculated in
prior years.
Recommendation: AHEPA 371, Inc. should reimburse the Property's operating account in the amount
of $14,210.
Management's response: Agree. AHEPA 371, Inc. will reimburse the Property's operating account.
Finding reference number: 2024-002
Assistance Listing (Federal award identification number and year): Section 202 Supportive
Housing for the Elderly (Project identification number 044-EE057 and 2001)
Auditor non-compliance code: N- Unauthorized distribution of project assets
Finding resolution status: Outstanding
Universe population size: The universal 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: $14,210
Statement of condition 2024-001: During the year ended June 30, 2024, the Corporation made
additional principal payments on the note payable of $33,799, which was in excess of surplus cash
calculated at June 30, 2023 by $14,210.
Criteria: In accordance with HUD approval for the note payable, dated April 15, 2016, the Corporation
may only make monthly payments of $3,627.34 and additional payments based on surplus cash
calculated annually. Any unauthorized payments shall be returned to the Corporation.
Effect: The Corporation is not in compliance with the HUD requirements. At June 30, 2024, the
Property's operating account is underfunded by $14,210. This amount has been considered in the
computation of surplus cash, distributions and residual receipts at June 30, 2024.
Cause: Management inadvertently made payments on the note based on surplus cash calculated in
prior years.
Recommendation: AHEPA 371, Inc. should reimburse the Property's operating account in the amount
of $14,210.
Management's response: Agree. AHEPA 371, Inc. will reimburse the Property's operating account.