Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly (Assistance Listing No. 14.157, 2024) 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 information is not applicable to the finding Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of condition #2024-001: The Corporation did not furnish HUD with a complete annual financial report within ninety (90) days following the end of the fiscal year ending December 31, 2024. Criteria: Pursuant to the Regulatory Agreement, within ninety (90) days, or such period established in writing by HUD, following the end of each fiscal year, the Corporation shall engage an independent, licensed Certified Public Accountant to audit the Corporation's annual financial report and to produce and furnish HUD an audit report in accordance with the requirements established by HUD. Effect: The Corporation is not in compliance with the Regulatory Agreement. Cause: Due to administrative delays, the Corporation did not submit the audited financial statements to HUD within the ninety (90) day requirement. Recommendation: The annual financial statements should be issued in a timely manner pursuant to the time frame set forth by HUD. Management's response: Management concurs with the finding and recommendation. The audited financial statements have been submitted to HUD.
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly (Assistance Listing No. 14.157, 2024) Auditor non-compliance code: M - Security Deposits Finding resolution status: Outstanding Universe population size: 12 months Sample size information: 3 months Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $557 Statement of condition #2024-002: The Corporation did not maintain resident security deposits in an amount equal to or greater than resident security deposits liabilities at all times during the year ended December 31, 2024. At December 31, 2024, the resident security deposit account was underfunded by $557. Criteria: Pursuant to the Regulatory Agreement, residents' security deposits should be funded in a separate account in an amount which shall at all time equal or exceed the aggregate of all outstanding obligations. Effect: Failure to fund resident security deposits could result in the inability of the Corporation to return security deposits to residents upon termination of the resident's lease. Cause: Management did not monitor the resident security deposit balance throughout the year. Recommendation: Management should ensure the security deposit account is adequately funded and transfer funds, if necessary, from the operating account to adequately fund the security deposit account. Management's response: Management concurs with the finding and intends to transfer funds from the operating account to adequately fund the security deposit account.
Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly (Assistance Listing No. 14.157, 2024) Auditor non-compliance code: A - Unauthorized withdrawal from the replacement reserve Finding resolution status: Resolved Universe population size: 1 invoice from 1 HUD unapproved 9250 withdrawal Sample size information: 1 invoice from 1 HUD unapproved 9250 withdrawal Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $16,954 Statement of condition #2024-003: The Corporation did not obtain HUD approval for a replacement reserve withdrawal totaling $16,954 during the year ended December 31, 2024. Criteria: Pursuant to the Regulatory Agreement, any funds in the replacement reserve account are to be maintained and require all disbursements from the account receive prior approval from HUD. Effect: The replacement reserve account is underfunded by $16,954 related to an unapproved withdrawal. Cause: Management withdrew the funds from the replacement reserve account prior to obtaining HUD approval. Recommendation: Management should transfer $16,954 from the operating account to the replacement reserve account. Management's response: Management concurs with the finding and transferred $16,954 on March 4, 2025 from the operating account to the replacement reserve account.