Assistance Listing title and number (federal award identification and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157 (Project identification number 114-EE052 and 1999)
Auditor non-compliance code: Z - Other
Finding resolution status: Resolved
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size 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: $24,300
Statement of Condition 2025-001 (Assistance Listing 14.157): During the year ended January 31, 2025, HUD approved $83,950 of withdrawals as a pre-release to pay for HVAC replacements and boilers at the Property. The Corporation used $24,300 of the pre-release to fund operations, instead of paying the invoices approved by HUD and had not paid as of January 31, 2025.
Criteria: Pursuant to Section 5 of the Regulatory Agreement, the Corporation may only make disbursements from the reserve for replacements for payments of amounts as approved by HUD.
Effect: The Corporation is not in compliance with the Regulatory Agreement.
Cause: Due to cash flow shortages, the Corporation was unable to use reserve for replacement withdrawals in the manor approved by HUD.
Recommendation: Management should ensure that HUD approved reserve for replacement withdrawals are used for the approved purposes.
Completion Date: March 3, 2025
Management Response: Agree. The Corporation paid the remaining costs included in the HUD approved withdrawal on March 3, 2025. There is no further action required.
Auditor non-compliance code: Z - Other
Finding resolution status: Resolved
Universe population size: 64 tenant files
Sample size information: 7 tenant files
Statistically valid sample: N/A
Name of Federal Agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of Condition 2025-002 (Assistance Listing 14.157): During the year ended January 31, 2025, 1 move-out resident file selected for testing under the compliance supplement were missing necessary documents required by the PRAC and HUD Handbook 4350.3.
Criteria: In accordance with the PRAC and HUD Handbook 4350.3, the Property must retain EIV reports, resident provided documentation, third party verification, and related supporting documentation in the resident file for the term of the tenancy plus three years.
Effect: The Property is not in compliance with the terms of the PRAC or HUD Handbook 4350.3. Current, future, and potentially prior funding under the PRAC could be impacted as a result of these resident files.
Cause: Due to the Property not having a manager, the resident did not sign the selected documents before the resident moved out.
Recommendation: Management should ensure that all resident files are maintained at the site for each resident of the Property in accordance with the HUD Handbook 4350.3.
Completion Date: June 13, 2024
Management Response: Management agrees with the recommendation and will ensure that resident files are retained in accordance with the HUD Handbook 4350.3. The resident moved-out on June 13, 2024. No further action is required.
Assistance Listing title and number (federal award identification and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157 (Project identification number 114-EE052 and 1999)
Auditor non-compliance code: Z - Other
Finding resolution status: Resolved
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size 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: $24,300
Statement of Condition 2025-001 (Assistance Listing 14.157): During the year ended January 31, 2025, HUD approved $83,950 of withdrawals as a pre-release to pay for HVAC replacements and boilers at the Property. The Corporation used $24,300 of the pre-release to fund operations, instead of paying the invoices approved by HUD and had not paid as of January 31, 2025.
Criteria: Pursuant to Section 5 of the Regulatory Agreement, the Corporation may only make disbursements from the reserve for replacements for payments of amounts as approved by HUD.
Effect: The Corporation is not in compliance with the Regulatory Agreement.
Cause: Due to cash flow shortages, the Corporation was unable to use reserve for replacement withdrawals in the manor approved by HUD.
Recommendation: Management should ensure that HUD approved reserve for replacement withdrawals are used for the approved purposes.
Completion Date: March 3, 2025
Management Response: Agree. The Corporation paid the remaining costs included in the HUD approved withdrawal on March 3, 2025. There is no further action required.
Auditor non-compliance code: Z - Other
Finding resolution status: Resolved
Universe population size: 64 tenant files
Sample size information: 7 tenant files
Statistically valid sample: N/A
Name of Federal Agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of Condition 2025-002 (Assistance Listing 14.157): During the year ended January 31, 2025, 1 move-out resident file selected for testing under the compliance supplement were missing necessary documents required by the PRAC and HUD Handbook 4350.3.
Criteria: In accordance with the PRAC and HUD Handbook 4350.3, the Property must retain EIV reports, resident provided documentation, third party verification, and related supporting documentation in the resident file for the term of the tenancy plus three years.
Effect: The Property is not in compliance with the terms of the PRAC or HUD Handbook 4350.3. Current, future, and potentially prior funding under the PRAC could be impacted as a result of these resident files.
Cause: Due to the Property not having a manager, the resident did not sign the selected documents before the resident moved out.
Recommendation: Management should ensure that all resident files are maintained at the site for each resident of the Property in accordance with the HUD Handbook 4350.3.
Completion Date: June 13, 2024
Management Response: Management agrees with the recommendation and will ensure that resident files are retained in accordance with the HUD Handbook 4350.3. The resident moved-out on June 13, 2024. No further action is required.
Assistance Listing title and number (federal award identification and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157 (Project identification number 114-EE052 and 1999)
Auditor non-compliance code: Z - Other
Finding resolution status: Resolved
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size 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: $24,300
Statement of Condition 2025-001 (Assistance Listing 14.157): During the year ended January 31, 2025, HUD approved $83,950 of withdrawals as a pre-release to pay for HVAC replacements and boilers at the Property. The Corporation used $24,300 of the pre-release to fund operations, instead of paying the invoices approved by HUD and had not paid as of January 31, 2025.
Criteria: Pursuant to Section 5 of the Regulatory Agreement, the Corporation may only make disbursements from the reserve for replacements for payments of amounts as approved by HUD.
Effect: The Corporation is not in compliance with the Regulatory Agreement.
Cause: Due to cash flow shortages, the Corporation was unable to use reserve for replacement withdrawals in the manor approved by HUD.
Recommendation: Management should ensure that HUD approved reserve for replacement withdrawals are used for the approved purposes.
Completion Date: March 3, 2025
Management Response: Agree. The Corporation paid the remaining costs included in the HUD approved withdrawal on March 3, 2025. There is no further action required.
Auditor non-compliance code: Z - Other
Finding resolution status: Resolved
Universe population size: 64 tenant files
Sample size information: 7 tenant files
Statistically valid sample: N/A
Name of Federal Agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of Condition 2025-002 (Assistance Listing 14.157): During the year ended January 31, 2025, 1 move-out resident file selected for testing under the compliance supplement were missing necessary documents required by the PRAC and HUD Handbook 4350.3.
Criteria: In accordance with the PRAC and HUD Handbook 4350.3, the Property must retain EIV reports, resident provided documentation, third party verification, and related supporting documentation in the resident file for the term of the tenancy plus three years.
Effect: The Property is not in compliance with the terms of the PRAC or HUD Handbook 4350.3. Current, future, and potentially prior funding under the PRAC could be impacted as a result of these resident files.
Cause: Due to the Property not having a manager, the resident did not sign the selected documents before the resident moved out.
Recommendation: Management should ensure that all resident files are maintained at the site for each resident of the Property in accordance with the HUD Handbook 4350.3.
Completion Date: June 13, 2024
Management Response: Management agrees with the recommendation and will ensure that resident files are retained in accordance with the HUD Handbook 4350.3. The resident moved-out on June 13, 2024. No further action is required.
Assistance Listing title and number (federal award identification and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157 (Project identification number 114-EE052 and 1999)
Auditor non-compliance code: Z - Other
Finding resolution status: Resolved
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size 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: $24,300
Statement of Condition 2025-001 (Assistance Listing 14.157): During the year ended January 31, 2025, HUD approved $83,950 of withdrawals as a pre-release to pay for HVAC replacements and boilers at the Property. The Corporation used $24,300 of the pre-release to fund operations, instead of paying the invoices approved by HUD and had not paid as of January 31, 2025.
Criteria: Pursuant to Section 5 of the Regulatory Agreement, the Corporation may only make disbursements from the reserve for replacements for payments of amounts as approved by HUD.
Effect: The Corporation is not in compliance with the Regulatory Agreement.
Cause: Due to cash flow shortages, the Corporation was unable to use reserve for replacement withdrawals in the manor approved by HUD.
Recommendation: Management should ensure that HUD approved reserve for replacement withdrawals are used for the approved purposes.
Completion Date: March 3, 2025
Management Response: Agree. The Corporation paid the remaining costs included in the HUD approved withdrawal on March 3, 2025. There is no further action required.
Auditor non-compliance code: Z - Other
Finding resolution status: Resolved
Universe population size: 64 tenant files
Sample size information: 7 tenant files
Statistically valid sample: N/A
Name of Federal Agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: N/A
Statement of Condition 2025-002 (Assistance Listing 14.157): During the year ended January 31, 2025, 1 move-out resident file selected for testing under the compliance supplement were missing necessary documents required by the PRAC and HUD Handbook 4350.3.
Criteria: In accordance with the PRAC and HUD Handbook 4350.3, the Property must retain EIV reports, resident provided documentation, third party verification, and related supporting documentation in the resident file for the term of the tenancy plus three years.
Effect: The Property is not in compliance with the terms of the PRAC or HUD Handbook 4350.3. Current, future, and potentially prior funding under the PRAC could be impacted as a result of these resident files.
Cause: Due to the Property not having a manager, the resident did not sign the selected documents before the resident moved out.
Recommendation: Management should ensure that all resident files are maintained at the site for each resident of the Property in accordance with the HUD Handbook 4350.3.
Completion Date: June 13, 2024
Management Response: Management agrees with the recommendation and will ensure that resident files are retained in accordance with the HUD Handbook 4350.3. The resident moved-out on June 13, 2024. No further action is required.