Finding reference number: 2024-001
Assistance Listing (Federal award identification number and year): Supportive Housing for
the Elderly, Assistance Listing No. 14.157, 122-EE136-WAH-NP and 2001
Auditor non-compliance code: B – Failure to make required residual receipt deposit
Finding resolution status: Resolved
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: $30,965
Statement of condition 2024-001: The Corporation's required deposit of $30,965 to the residual
receipts account per the December 31, 2023 Computation of Surplus Cash, Distributions and Residual
Receipts was not deposited within 90 days of the fiscal year end.
Criteria: Pursuant to the HUD regulations, surplus cash is required to be deposited into a separate
residual receipts fund within 90 days after the fiscal period ends.
Effect: The Corporation is not in compliance with terms of the Regulatory Agreement.
Cause: Management did not deposit the funds timely.
Recommendation: Management should make all required residual receipt deposits per the annual
Computation of Surplus Cash, Distributions and Residual Receipts within 90 days after fiscal year end.
Management's response: Management concurs with the finding and the auditor's recommendation.
Management deposited $30,965 into the residual receipts fund on December 20, 2024. No further
action is required.
Finding reference number: 2024-002
Assistance Listing (Federal award identification number and year): Supportive Housing for
the Elderly, Assistance Listing No. 14.157, 122-EE136-WAH-NP and 2001
Auditor non-compliance code: H – Unauthorized distribution of project assets
Finding resolution status: Unresolved
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: $15,483
Statement of condition 2024-002: The Corporation made a payment to LAHD in the amount of
$15,483 and did not obtain the required HUD approval.
Criteria: The Corporation shall not without the written approval of HUD disburse or payout any funds
except for operation of the Property as provided in the Regulatory and Capital Advance Agreements.
In accordance with the applicable agreements, the annual payments to LAHD are required to be paid
from residual receipts with prior approval from HUD.
Effect: The Corporation is not in compliance with terms of the Regulatory and Capital Advance
Agreements and the Property's operating account is underfunded by $15,483.
Cause: The Corporation was billed by the lender and processed the payment without prior approval
from HUD.
Recommendation: The Corporation should request retroactive HUD approval to make the payment
or request reimbursement from the lender.
Management's response: Management concurs with the finding and the auditor's recommendation.
Management has requested approval from HUD. As of the report date, no response has been received.
Finding reference number: 2024-001
Assistance Listing (Federal award identification number and year): Supportive Housing for
the Elderly, Assistance Listing No. 14.157, 122-EE136-WAH-NP and 2001
Auditor non-compliance code: B – Failure to make required residual receipt deposit
Finding resolution status: Resolved
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: $30,965
Statement of condition 2024-001: The Corporation's required deposit of $30,965 to the residual
receipts account per the December 31, 2023 Computation of Surplus Cash, Distributions and Residual
Receipts was not deposited within 90 days of the fiscal year end.
Criteria: Pursuant to the HUD regulations, surplus cash is required to be deposited into a separate
residual receipts fund within 90 days after the fiscal period ends.
Effect: The Corporation is not in compliance with terms of the Regulatory Agreement.
Cause: Management did not deposit the funds timely.
Recommendation: Management should make all required residual receipt deposits per the annual
Computation of Surplus Cash, Distributions and Residual Receipts within 90 days after fiscal year end.
Management's response: Management concurs with the finding and the auditor's recommendation.
Management deposited $30,965 into the residual receipts fund on December 20, 2024. No further
action is required.
Finding reference number: 2024-002
Assistance Listing (Federal award identification number and year): Supportive Housing for
the Elderly, Assistance Listing No. 14.157, 122-EE136-WAH-NP and 2001
Auditor non-compliance code: H – Unauthorized distribution of project assets
Finding resolution status: Unresolved
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: $15,483
Statement of condition 2024-002: The Corporation made a payment to LAHD in the amount of
$15,483 and did not obtain the required HUD approval.
Criteria: The Corporation shall not without the written approval of HUD disburse or payout any funds
except for operation of the Property as provided in the Regulatory and Capital Advance Agreements.
In accordance with the applicable agreements, the annual payments to LAHD are required to be paid
from residual receipts with prior approval from HUD.
Effect: The Corporation is not in compliance with terms of the Regulatory and Capital Advance
Agreements and the Property's operating account is underfunded by $15,483.
Cause: The Corporation was billed by the lender and processed the payment without prior approval
from HUD.
Recommendation: The Corporation should request retroactive HUD approval to make the payment
or request reimbursement from the lender.
Management's response: Management concurs with the finding and the auditor's recommendation.
Management has requested approval from HUD. As of the report date, no response has been received.
Finding reference number: 2024-001
Assistance Listing (Federal award identification number and year): Supportive Housing for
the Elderly, Assistance Listing No. 14.157, 122-EE136-WAH-NP and 2001
Auditor non-compliance code: B – Failure to make required residual receipt deposit
Finding resolution status: Resolved
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: $30,965
Statement of condition 2024-001: The Corporation's required deposit of $30,965 to the residual
receipts account per the December 31, 2023 Computation of Surplus Cash, Distributions and Residual
Receipts was not deposited within 90 days of the fiscal year end.
Criteria: Pursuant to the HUD regulations, surplus cash is required to be deposited into a separate
residual receipts fund within 90 days after the fiscal period ends.
Effect: The Corporation is not in compliance with terms of the Regulatory Agreement.
Cause: Management did not deposit the funds timely.
Recommendation: Management should make all required residual receipt deposits per the annual
Computation of Surplus Cash, Distributions and Residual Receipts within 90 days after fiscal year end.
Management's response: Management concurs with the finding and the auditor's recommendation.
Management deposited $30,965 into the residual receipts fund on December 20, 2024. No further
action is required.
Finding reference number: 2024-002
Assistance Listing (Federal award identification number and year): Supportive Housing for
the Elderly, Assistance Listing No. 14.157, 122-EE136-WAH-NP and 2001
Auditor non-compliance code: H – Unauthorized distribution of project assets
Finding resolution status: Unresolved
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: $15,483
Statement of condition 2024-002: The Corporation made a payment to LAHD in the amount of
$15,483 and did not obtain the required HUD approval.
Criteria: The Corporation shall not without the written approval of HUD disburse or payout any funds
except for operation of the Property as provided in the Regulatory and Capital Advance Agreements.
In accordance with the applicable agreements, the annual payments to LAHD are required to be paid
from residual receipts with prior approval from HUD.
Effect: The Corporation is not in compliance with terms of the Regulatory and Capital Advance
Agreements and the Property's operating account is underfunded by $15,483.
Cause: The Corporation was billed by the lender and processed the payment without prior approval
from HUD.
Recommendation: The Corporation should request retroactive HUD approval to make the payment
or request reimbursement from the lender.
Management's response: Management concurs with the finding and the auditor's recommendation.
Management has requested approval from HUD. As of the report date, no response has been received.
Finding reference number: 2024-001
Assistance Listing (Federal award identification number and year): Supportive Housing for
the Elderly, Assistance Listing No. 14.157, 122-EE136-WAH-NP and 2001
Auditor non-compliance code: B – Failure to make required residual receipt deposit
Finding resolution status: Resolved
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: $30,965
Statement of condition 2024-001: The Corporation's required deposit of $30,965 to the residual
receipts account per the December 31, 2023 Computation of Surplus Cash, Distributions and Residual
Receipts was not deposited within 90 days of the fiscal year end.
Criteria: Pursuant to the HUD regulations, surplus cash is required to be deposited into a separate
residual receipts fund within 90 days after the fiscal period ends.
Effect: The Corporation is not in compliance with terms of the Regulatory Agreement.
Cause: Management did not deposit the funds timely.
Recommendation: Management should make all required residual receipt deposits per the annual
Computation of Surplus Cash, Distributions and Residual Receipts within 90 days after fiscal year end.
Management's response: Management concurs with the finding and the auditor's recommendation.
Management deposited $30,965 into the residual receipts fund on December 20, 2024. No further
action is required.
Finding reference number: 2024-002
Assistance Listing (Federal award identification number and year): Supportive Housing for
the Elderly, Assistance Listing No. 14.157, 122-EE136-WAH-NP and 2001
Auditor non-compliance code: H – Unauthorized distribution of project assets
Finding resolution status: Unresolved
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: $15,483
Statement of condition 2024-002: The Corporation made a payment to LAHD in the amount of
$15,483 and did not obtain the required HUD approval.
Criteria: The Corporation shall not without the written approval of HUD disburse or payout any funds
except for operation of the Property as provided in the Regulatory and Capital Advance Agreements.
In accordance with the applicable agreements, the annual payments to LAHD are required to be paid
from residual receipts with prior approval from HUD.
Effect: The Corporation is not in compliance with terms of the Regulatory and Capital Advance
Agreements and the Property's operating account is underfunded by $15,483.
Cause: The Corporation was billed by the lender and processed the payment without prior approval
from HUD.
Recommendation: The Corporation should request retroactive HUD approval to make the payment
or request reimbursement from the lender.
Management's response: Management concurs with the finding and the auditor's recommendation.
Management has requested approval from HUD. As of the report date, no response has been received.