The amount reported for Assistance Listing Number 14.157 in expenditures relate to U.S. Department of Housing and Urban Development - Supportive Housing for the Elderly - Section 202 Capital Advance Program. The ending balance of the capital advance is $1,222,000 at September 30, 2025.
Condition - The reserve for replacements account is underfunded by $3,000 at September 30, 2025. Criteria - As part of Special Tests and Provisions related to Assistance Listing Number 14.157-Supportive Housing for the Elderly, the Corporation is required to deposit $1,000 in a reserve for replacements account on a monthly basis. Effect - The Corporation was not in compliance with the above HUD regulations. Cause - The reserve for replacements account was not adequately funded during the year. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding - This is a repeat finding of 2024-002 from the prior year. Recommendation - We recommend that the delinquent deposits totaling $3,000 for the year ended September 30, 2025 be deposited into the reserve for replacements account as soon as possible. Management's Reply - (a) Comments on the finding and recommendation: Management agrees with the finding. Management also agrees with the recommendation. Please see below for action taken. (b) Action taken: Management will deposit the delinquent amount of $3,000 into the reserve for replacements account by the end of January 2026.
Condition - The residual receipts account is underfunded by $52,634 at September 30, 2025. Criteria - As part of Special Tests and Provisions related to Assistance Listing Number 14.157-Supportive Housing for the Elderly, the Corporation is required to deposit surplus cash in a residual receipts account. Effect - The Corporation was not in compliance with the above HUD regulations. Cause - The residual receipts account was not adequately funded during the year. Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding - This is a repeat finding of 2024-003 from the prior year. Recommendation - We recommend that the delinquent deposits totaling $52,634 for the year ended September 30, 2025 be deposited into the residual receipts account as soon as possible. Management's Reply - (a) Comments on the finding and recommendation: Management agrees with the finding. Management also agrees with the recommendation. Please see below for action taken. (b) Action taken: Management will reach out to HUD to request a wavier of the delinquent amount of $52,634. If the request does not get approved, Management will work towards an acceptable resolution.