Assistance Listing (Federal award identification number and year): Supportive Housing for the
Elderly (Assistance Listing No. 14.157, 2003)
Auditor non-compliance code: N – Reserve for Replacements Deposits
Finding resolution status: Resolved
Universe population size: 12 months of deposits to the reserve for replacement
Sample size information: 12 months of deposits to the reserve for replacement
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $6,060
Statement of condition #2024-001: During the year ended September 30, 2024, the Corporation
did not make the HUD required number of deposits to the reserve for replacements.
Criteria: Pursuant to item 10(b) of the Regulatory Agreement (form HUD-92466), the Corporation
shall make monthly deposits into a separate reserve for replacements account.
Effect: The Corporation is not in compliance with the terms of the Regulatory Agreement. The reserve
for replacements account is underfunded by $6,060 at September 30, 2024.
Cause: The prior management agent did not make regular monthly deposits during the year ended
September 30, 2024. Due to the proximity of the change in agents to year end, this lack of deposits
was not noticed until the year end had already passed.
Recommendation: Management should transfer $6,060 from the operating account to the reserve
for replacements account.
Management's response: Management concurs with the finding and recommendation. Management
deposited $6,060 into the replacement reserve on December 18, 2024, and has begun making monthly
deposits to the reserve to ensure compliance.
Assistance Listing (Federal award identification number and year): Supportive Housing for the
Elderly (Assistance Listing No. 14.157, 2003)
Auditor non-compliance code: N – Reserve for Replacements Deposits
Finding resolution status: Resolved
Universe population size: 12 months of deposits to the reserve for replacement
Sample size information: 12 months of deposits to the reserve for replacement
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $6,060
Statement of condition #2024-001: During the year ended September 30, 2024, the Corporation
did not make the HUD required number of deposits to the reserve for replacements.
Criteria: Pursuant to item 10(b) of the Regulatory Agreement (form HUD-92466), the Corporation
shall make monthly deposits into a separate reserve for replacements account.
Effect: The Corporation is not in compliance with the terms of the Regulatory Agreement. The reserve
for replacements account is underfunded by $6,060 at September 30, 2024.
Cause: The prior management agent did not make regular monthly deposits during the year ended
September 30, 2024. Due to the proximity of the change in agents to year end, this lack of deposits
was not noticed until the year end had already passed.
Recommendation: Management should transfer $6,060 from the operating account to the reserve
for replacements account.
Management's response: Management concurs with the finding and recommendation. Management
deposited $6,060 into the replacement reserve on December 18, 2024, and has begun making monthly
deposits to the reserve to ensure compliance.
Assistance Listing (Federal award identification number and year): Supportive Housing for the
Elderly (Assistance Listing No. 14.157, 2003)
Auditor non-compliance code: N – Reserve for Replacements Deposits
Finding resolution status: Resolved
Universe population size: 12 months of deposits to the reserve for replacement
Sample size information: 12 months of deposits to the reserve for replacement
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $6,060
Statement of condition #2024-001: During the year ended September 30, 2024, the Corporation
did not make the HUD required number of deposits to the reserve for replacements.
Criteria: Pursuant to item 10(b) of the Regulatory Agreement (form HUD-92466), the Corporation
shall make monthly deposits into a separate reserve for replacements account.
Effect: The Corporation is not in compliance with the terms of the Regulatory Agreement. The reserve
for replacements account is underfunded by $6,060 at September 30, 2024.
Cause: The prior management agent did not make regular monthly deposits during the year ended
September 30, 2024. Due to the proximity of the change in agents to year end, this lack of deposits
was not noticed until the year end had already passed.
Recommendation: Management should transfer $6,060 from the operating account to the reserve
for replacements account.
Management's response: Management concurs with the finding and recommendation. Management
deposited $6,060 into the replacement reserve on December 18, 2024, and has begun making monthly
deposits to the reserve to ensure compliance.
Assistance Listing (Federal award identification number and year): Supportive Housing for the
Elderly (Assistance Listing No. 14.157, 2003)
Auditor non-compliance code: N – Reserve for Replacements Deposits
Finding resolution status: Resolved
Universe population size: 12 months of deposits to the reserve for replacement
Sample size information: 12 months of deposits to the reserve for replacement
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $6,060
Statement of condition #2024-001: During the year ended September 30, 2024, the Corporation
did not make the HUD required number of deposits to the reserve for replacements.
Criteria: Pursuant to item 10(b) of the Regulatory Agreement (form HUD-92466), the Corporation
shall make monthly deposits into a separate reserve for replacements account.
Effect: The Corporation is not in compliance with the terms of the Regulatory Agreement. The reserve
for replacements account is underfunded by $6,060 at September 30, 2024.
Cause: The prior management agent did not make regular monthly deposits during the year ended
September 30, 2024. Due to the proximity of the change in agents to year end, this lack of deposits
was not noticed until the year end had already passed.
Recommendation: Management should transfer $6,060 from the operating account to the reserve
for replacements account.
Management's response: Management concurs with the finding and recommendation. Management
deposited $6,060 into the replacement reserve on December 18, 2024, and has begun making monthly
deposits to the reserve to ensure compliance.