Assistance Listing (Federal award identification number and year): Supportive Housing for Persons with Disabilities, 14.181, 1995 (Project identification number 085-HD007)
Auditor non-compliance code: J - Unauthorized management fees
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.
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $9,158
Statement of condition 2024-001: For the year ended June 30, 2024, the Corporation did not have a HUD approved Project Owner's/Management Agent's Certification (HUD-9839-B).
Criteria: Pursuant to the regulatory agreement and HUD handbook 5381.5 REV-2, the Corporation's management agent must have an approved Project Owner's/Management Agent's Certification (HUD-9839-B).
Effect: The Corporation is not in compliance with the regulatory agreement. Management fees should not be paid without an approved Project Owner's/Management Agent's Certification (HUD-9839-B).
Cause: The Property changed management agent's effective October 1, 2021 and HUD has not returned an executed Project Owner's/Management Agent's Certification (HUD-9839-B) to the new management agent.
Recommendation: Management should continue to request the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD. Management should not pay any management fees until the executed Project Owner's/Management Agent's Certification (HUD-9839-B) is received.
Completion date: June 30, 2025
Management's response: Agree. Management received email correspondence from HUD on August 12, 2021 that stated the Agent is approved to take over management immediately and the Project Owner's/Management Agent's Certification (HUD-9839-B) would be retroactively effective. Management has continued to seek the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD.
Assistance Listing (Federal award identification number and year): Supportive Housing for Persons with Disabilities, 14.181, 1995 (Project identification number 085-HD007)
Auditor non-compliance code: J - Unauthorized management fees
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.
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $9,158
Statement of condition 2024-001: For the year ended June 30, 2024, the Corporation did not have a HUD approved Project Owner's/Management Agent's Certification (HUD-9839-B).
Criteria: Pursuant to the regulatory agreement and HUD handbook 5381.5 REV-2, the Corporation's management agent must have an approved Project Owner's/Management Agent's Certification (HUD-9839-B).
Effect: The Corporation is not in compliance with the regulatory agreement. Management fees should not be paid without an approved Project Owner's/Management Agent's Certification (HUD-9839-B).
Cause: The Property changed management agent's effective October 1, 2021 and HUD has not returned an executed Project Owner's/Management Agent's Certification (HUD-9839-B) to the new management agent.
Recommendation: Management should continue to request the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD. Management should not pay any management fees until the executed Project Owner's/Management Agent's Certification (HUD-9839-B) is received.
Completion date: June 30, 2025
Management's response: Agree. Management received email correspondence from HUD on August 12, 2021 that stated the Agent is approved to take over management immediately and the Project Owner's/Management Agent's Certification (HUD-9839-B) would be retroactively effective. Management has continued to seek the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD.
Assistance Listing (Federal award identification number and year): Supportive Housing for Persons with Disabilities, 14.181, 1995 (Project identification number 085-HD007)
Auditor non-compliance code: N – Reserve for Replacements Deposits
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: $15,598
Statement of condition 2024-002: The Corporation did not make the required monthly deposits to the reserve for replacements account and did not repay the full PRAC loan. The reserve for replacements fund is underfunded by $15,598 as of June 30, 2024.
Criteria: Pursuant to the Regulatory Agreement, the Corporation is required to make monthly deposits into a separate reserve for replacements account and ensure that the account is adequately funded.
Effect: The Corporation is not in compliance with the terms of the regulatory agreement. The reserve for replacements is underfunded by $15,598 as of June 30, 2024.
Cause: Management inadvertently omitted depositing funds in November 2023 in the amount of $598 and did not have adequate cash to repay the full PRAC loan as of June 30, 2024.
Recommendation: Management should deposit $15,598 into the reserve for replacements.
Completion date: June 30, 2025
Management's response: Agree. On September 11, 2024, management transferred $598 to the reserve for replacements. As of the report date, the remaining PRAC loan of $15,000 has not been repaid.
Assistance Listing (Federal award identification number and year): Supportive Housing for Persons with Disabilities, 14.181, 1995 (Project identification number 085-HD007)
Auditor non-compliance code: N – Reserve for Replacements Deposits
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: $15,598
Statement of condition 2024-002: The Corporation did not make the required monthly deposits to the reserve for replacements account and did not repay the full PRAC loan. The reserve for replacements fund is underfunded by $15,598 as of June 30, 2024.
Criteria: Pursuant to the Regulatory Agreement, the Corporation is required to make monthly deposits into a separate reserve for replacements account and ensure that the account is adequately funded.
Effect: The Corporation is not in compliance with the terms of the regulatory agreement. The reserve for replacements is underfunded by $15,598 as of June 30, 2024.
Cause: Management inadvertently omitted depositing funds in November 2023 in the amount of $598 and did not have adequate cash to repay the full PRAC loan as of June 30, 2024.
Recommendation: Management should deposit $15,598 into the reserve for replacements.
Completion date: June 30, 2025
Management's response: Agree. On September 11, 2024, management transferred $598 to the reserve for replacements. As of the report date, the remaining PRAC loan of $15,000 has not been repaid.
Assistance Listing (Federal award identification number and year): Supportive Housing for Persons with Disabilities, 14.181, 1995 (Project identification number 085-HD007)
Auditor non-compliance code: J - Unauthorized management fees
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.
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $9,158
Statement of condition 2024-001: For the year ended June 30, 2024, the Corporation did not have a HUD approved Project Owner's/Management Agent's Certification (HUD-9839-B).
Criteria: Pursuant to the regulatory agreement and HUD handbook 5381.5 REV-2, the Corporation's management agent must have an approved Project Owner's/Management Agent's Certification (HUD-9839-B).
Effect: The Corporation is not in compliance with the regulatory agreement. Management fees should not be paid without an approved Project Owner's/Management Agent's Certification (HUD-9839-B).
Cause: The Property changed management agent's effective October 1, 2021 and HUD has not returned an executed Project Owner's/Management Agent's Certification (HUD-9839-B) to the new management agent.
Recommendation: Management should continue to request the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD. Management should not pay any management fees until the executed Project Owner's/Management Agent's Certification (HUD-9839-B) is received.
Completion date: June 30, 2025
Management's response: Agree. Management received email correspondence from HUD on August 12, 2021 that stated the Agent is approved to take over management immediately and the Project Owner's/Management Agent's Certification (HUD-9839-B) would be retroactively effective. Management has continued to seek the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD.
Assistance Listing (Federal award identification number and year): Supportive Housing for Persons with Disabilities, 14.181, 1995 (Project identification number 085-HD007)
Auditor non-compliance code: J - Unauthorized management fees
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.
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $9,158
Statement of condition 2024-001: For the year ended June 30, 2024, the Corporation did not have a HUD approved Project Owner's/Management Agent's Certification (HUD-9839-B).
Criteria: Pursuant to the regulatory agreement and HUD handbook 5381.5 REV-2, the Corporation's management agent must have an approved Project Owner's/Management Agent's Certification (HUD-9839-B).
Effect: The Corporation is not in compliance with the regulatory agreement. Management fees should not be paid without an approved Project Owner's/Management Agent's Certification (HUD-9839-B).
Cause: The Property changed management agent's effective October 1, 2021 and HUD has not returned an executed Project Owner's/Management Agent's Certification (HUD-9839-B) to the new management agent.
Recommendation: Management should continue to request the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD. Management should not pay any management fees until the executed Project Owner's/Management Agent's Certification (HUD-9839-B) is received.
Completion date: June 30, 2025
Management's response: Agree. Management received email correspondence from HUD on August 12, 2021 that stated the Agent is approved to take over management immediately and the Project Owner's/Management Agent's Certification (HUD-9839-B) would be retroactively effective. Management has continued to seek the executed Project Owner's/Management Agent's Certification (HUD-9839-B) from HUD.
Assistance Listing (Federal award identification number and year): Supportive Housing for Persons with Disabilities, 14.181, 1995 (Project identification number 085-HD007)
Auditor non-compliance code: N – Reserve for Replacements Deposits
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: $15,598
Statement of condition 2024-002: The Corporation did not make the required monthly deposits to the reserve for replacements account and did not repay the full PRAC loan. The reserve for replacements fund is underfunded by $15,598 as of June 30, 2024.
Criteria: Pursuant to the Regulatory Agreement, the Corporation is required to make monthly deposits into a separate reserve for replacements account and ensure that the account is adequately funded.
Effect: The Corporation is not in compliance with the terms of the regulatory agreement. The reserve for replacements is underfunded by $15,598 as of June 30, 2024.
Cause: Management inadvertently omitted depositing funds in November 2023 in the amount of $598 and did not have adequate cash to repay the full PRAC loan as of June 30, 2024.
Recommendation: Management should deposit $15,598 into the reserve for replacements.
Completion date: June 30, 2025
Management's response: Agree. On September 11, 2024, management transferred $598 to the reserve for replacements. As of the report date, the remaining PRAC loan of $15,000 has not been repaid.
Assistance Listing (Federal award identification number and year): Supportive Housing for Persons with Disabilities, 14.181, 1995 (Project identification number 085-HD007)
Auditor non-compliance code: N – Reserve for Replacements Deposits
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: $15,598
Statement of condition 2024-002: The Corporation did not make the required monthly deposits to the reserve for replacements account and did not repay the full PRAC loan. The reserve for replacements fund is underfunded by $15,598 as of June 30, 2024.
Criteria: Pursuant to the Regulatory Agreement, the Corporation is required to make monthly deposits into a separate reserve for replacements account and ensure that the account is adequately funded.
Effect: The Corporation is not in compliance with the terms of the regulatory agreement. The reserve for replacements is underfunded by $15,598 as of June 30, 2024.
Cause: Management inadvertently omitted depositing funds in November 2023 in the amount of $598 and did not have adequate cash to repay the full PRAC loan as of June 30, 2024.
Recommendation: Management should deposit $15,598 into the reserve for replacements.
Completion date: June 30, 2025
Management's response: Agree. On September 11, 2024, management transferred $598 to the reserve for replacements. As of the report date, the remaining PRAC loan of $15,000 has not been repaid.