Finding reference number: 2024-001
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (034-EE145 and 2008)
Auditor non-compliance code: A-Unauthorized withdrawal from replacement reserve
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: $5,562
Statement of condition 2024-001: During the year ended December 31, 2024, the Corporation withdrew funds totaling $5,562 from the reserve for replacements account without receiving approval from HUD.
Criteria: Pursuant to item 5(a) of the HUD Regulatory Agreement, the Corporation shall not make withdrawals from the reserve for replacements account except after receiving the written consent of HUD and for the purpose of replacing structural elements and mechanical equipment of the Community.
Effect: The Corporation is not in compliance with the terms of the HUD Regulatory Agreement. As of December 31, 2024, the reserve for replacements account is underfunded by $5,562.
Cause: Management inadvertently submitted reserve for replacement withdrawal requests to HUD, which included duplicate or reduced invoices totaling $5,562.
Recommendation: Management should transfer funds of $5,562 from the operating cash account to the reserve for replacements account.
Management's response: Agree. Management intends to transfer $5,562 from the operating cash account to the reserve for replacements account.
Finding reference number: 2024-001
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (034-EE145 and 2008)
Auditor non-compliance code: A-Unauthorized withdrawal from replacement reserve
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: $5,562
Statement of condition 2024-001: During the year ended December 31, 2024, the Corporation withdrew funds totaling $5,562 from the reserve for replacements account without receiving approval from HUD.
Criteria: Pursuant to item 5(a) of the HUD Regulatory Agreement, the Corporation shall not make withdrawals from the reserve for replacements account except after receiving the written consent of HUD and for the purpose of replacing structural elements and mechanical equipment of the Community.
Effect: The Corporation is not in compliance with the terms of the HUD Regulatory Agreement. As of December 31, 2024, the reserve for replacements account is underfunded by $5,562.
Cause: Management inadvertently submitted reserve for replacement withdrawal requests to HUD, which included duplicate or reduced invoices totaling $5,562.
Recommendation: Management should transfer funds of $5,562 from the operating cash account to the reserve for replacements account.
Management's response: Agree. Management intends to transfer $5,562 from the operating cash account to the reserve for replacements account.
Finding reference number: 2024-001
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (034-EE145 and 2008)
Auditor non-compliance code: A-Unauthorized withdrawal from replacement reserve
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: $5,562
Statement of condition 2024-001: During the year ended December 31, 2024, the Corporation withdrew funds totaling $5,562 from the reserve for replacements account without receiving approval from HUD.
Criteria: Pursuant to item 5(a) of the HUD Regulatory Agreement, the Corporation shall not make withdrawals from the reserve for replacements account except after receiving the written consent of HUD and for the purpose of replacing structural elements and mechanical equipment of the Community.
Effect: The Corporation is not in compliance with the terms of the HUD Regulatory Agreement. As of December 31, 2024, the reserve for replacements account is underfunded by $5,562.
Cause: Management inadvertently submitted reserve for replacement withdrawal requests to HUD, which included duplicate or reduced invoices totaling $5,562.
Recommendation: Management should transfer funds of $5,562 from the operating cash account to the reserve for replacements account.
Management's response: Agree. Management intends to transfer $5,562 from the operating cash account to the reserve for replacements account.
Finding reference number: 2024-001
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (034-EE145 and 2008)
Auditor non-compliance code: A-Unauthorized withdrawal from replacement reserve
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: $5,562
Statement of condition 2024-001: During the year ended December 31, 2024, the Corporation withdrew funds totaling $5,562 from the reserve for replacements account without receiving approval from HUD.
Criteria: Pursuant to item 5(a) of the HUD Regulatory Agreement, the Corporation shall not make withdrawals from the reserve for replacements account except after receiving the written consent of HUD and for the purpose of replacing structural elements and mechanical equipment of the Community.
Effect: The Corporation is not in compliance with the terms of the HUD Regulatory Agreement. As of December 31, 2024, the reserve for replacements account is underfunded by $5,562.
Cause: Management inadvertently submitted reserve for replacement withdrawal requests to HUD, which included duplicate or reduced invoices totaling $5,562.
Recommendation: Management should transfer funds of $5,562 from the operating cash account to the reserve for replacements account.
Management's response: Agree. Management intends to transfer $5,562 from the operating cash account to the reserve for replacements account.