Questioned Costs: $3,300 Repeat Finding: This is a repeat finding. The prior year finding reference number was 2021-003. Condition: Due to an administrative error, too much was distributed from the replacement reserve in 2019. Criteria: All releases from the replacement reserve should be for qualified expenses and should be approved by HUD. Effect or Potential Effect: The replacement reserve is underfunded by $3,300 at June 30, 2022. Cause: An invoice was submitted by management, but was paid by the nonprofit sponsor?s foundation on the Company?s behalf. Recommendation: Due to cash flow constraints, the Company was not able to repay the nonprofit sponsor?s foundation for the submitted invoice paid on the Company?s behalf. The Company will repay the nonprofit sponsor?s foundation when cash is available. Reporting Views of Responsible Officials: Management agrees with the finding. The company will repay the nonprofit sponsor?s foundation when cash is available.
Questioned Costs: $1,500 Repeat Finding: This is a repeat finding. The prior year finding reference numbers was 2021-004. Condition: Due to an administrative error, too much was distributed from the replacement reserve in 2020. Criteria: All releases from the replacement reserve should be for qualified expenses and should be approved by HUD. Effect or Potential Effect: The replacement reserve was underfunded by $1,500 at June 30, 2022. Cause: An invoice was submitted by management, but was paid by the nonprofit sponsor?s foundation on the Company?s behalf. Recommendation: Due to cash flow constraints, the Company was not able to repay the nonprofit sponsor?s foundation for the submitted invoice paid on the Company?s behalf. The Company will repay the nonprofit sponsor?s foundation when cash is available. Reporting Views of Responsible Officials: Management agrees with the finding. The company will repay the nonprofit sponsor?s foundation when cash is available.
Questioned Costs: $291,545 Repeat Finding: This is a repeat finding. The prior year finding reference number was 2021-005. Information on Universe Population Size: Monthly replacement reserve deposits. Sample Size Information: 12 monthly payments. Condition: The replacement reserve is underfunded at June 30, 2022. Criteria: According to the regulatory agreement, a monthly deposit must be made into the replacement reserve at an amount mandated by HUD. Effect or Potential Effect: The replacement reserve was underfunded by $291,545 at June 30, 2022. Cause: When the mortgage was refinanced in 2011, the regulatory agreement required the debt service savings to be deposited into the reserve for replacements account. HUD agreed to suspend the monthly required debt service savings deposit effective September 1, 2019. HUD is requesting the debt service savings from December 1, 2012 until August 31, 2019 be placed in the reserve for replacement account. The project has been unable to pay the debt service savings portion of the monthly replacement reserve deposits due to their financial situation. Recommendation: The project should make a deposit to the replacement reserve account in the amount of $291,545 or negotiate with HUD to get the past debt service saving deposit requirement suspended permanently. Reporting Views of Responsible Officials: Management is negotiating with HUD to get the past debt service saving deposit requirement suspended permanently.
Questioned Costs: $7,486 Repeat Finding: This is a repeat finding. The prior year finding reference number was 2021-006. Condition: Due to an administrative error, too much was distributed from the replacement reserve in 2021. Criteria: All releases from the replacement reserve should be for qualified expenses and should be approved by HUD. Effect or Potential Effect: The replacement reserve is underfunded by $7,486 at June 30, 2022. Cause: Form HUD-9250 was submitted by management. The mortgage company transferred the amount from the replacement reserve to the insurance escrow. In addition, the mortgage company issued a check to the Company. Recommendation: Due to cash flow constraints, the Company was not able to repay the replacement reserve for the duplicate release. The Company will repay the replacement reserve when cash is available. Reporting Views of Responsible Officials: Management agrees with the finding. The company will repay the replacement reserve when cash is available.
Questioned Costs: $3,300 Repeat Finding: This is a repeat finding. The prior year finding reference number was 2021-003. Condition: Due to an administrative error, too much was distributed from the replacement reserve in 2019. Criteria: All releases from the replacement reserve should be for qualified expenses and should be approved by HUD. Effect or Potential Effect: The replacement reserve is underfunded by $3,300 at June 30, 2022. Cause: An invoice was submitted by management, but was paid by the nonprofit sponsor?s foundation on the Company?s behalf. Recommendation: Due to cash flow constraints, the Company was not able to repay the nonprofit sponsor?s foundation for the submitted invoice paid on the Company?s behalf. The Company will repay the nonprofit sponsor?s foundation when cash is available. Reporting Views of Responsible Officials: Management agrees with the finding. The company will repay the nonprofit sponsor?s foundation when cash is available.
Questioned Costs: $1,500 Repeat Finding: This is a repeat finding. The prior year finding reference numbers was 2021-004. Condition: Due to an administrative error, too much was distributed from the replacement reserve in 2020. Criteria: All releases from the replacement reserve should be for qualified expenses and should be approved by HUD. Effect or Potential Effect: The replacement reserve was underfunded by $1,500 at June 30, 2022. Cause: An invoice was submitted by management, but was paid by the nonprofit sponsor?s foundation on the Company?s behalf. Recommendation: Due to cash flow constraints, the Company was not able to repay the nonprofit sponsor?s foundation for the submitted invoice paid on the Company?s behalf. The Company will repay the nonprofit sponsor?s foundation when cash is available. Reporting Views of Responsible Officials: Management agrees with the finding. The company will repay the nonprofit sponsor?s foundation when cash is available.
Questioned Costs: $291,545 Repeat Finding: This is a repeat finding. The prior year finding reference number was 2021-005. Information on Universe Population Size: Monthly replacement reserve deposits. Sample Size Information: 12 monthly payments. Condition: The replacement reserve is underfunded at June 30, 2022. Criteria: According to the regulatory agreement, a monthly deposit must be made into the replacement reserve at an amount mandated by HUD. Effect or Potential Effect: The replacement reserve was underfunded by $291,545 at June 30, 2022. Cause: When the mortgage was refinanced in 2011, the regulatory agreement required the debt service savings to be deposited into the reserve for replacements account. HUD agreed to suspend the monthly required debt service savings deposit effective September 1, 2019. HUD is requesting the debt service savings from December 1, 2012 until August 31, 2019 be placed in the reserve for replacement account. The project has been unable to pay the debt service savings portion of the monthly replacement reserve deposits due to their financial situation. Recommendation: The project should make a deposit to the replacement reserve account in the amount of $291,545 or negotiate with HUD to get the past debt service saving deposit requirement suspended permanently. Reporting Views of Responsible Officials: Management is negotiating with HUD to get the past debt service saving deposit requirement suspended permanently.
Questioned Costs: $7,486 Repeat Finding: This is a repeat finding. The prior year finding reference number was 2021-006. Condition: Due to an administrative error, too much was distributed from the replacement reserve in 2021. Criteria: All releases from the replacement reserve should be for qualified expenses and should be approved by HUD. Effect or Potential Effect: The replacement reserve is underfunded by $7,486 at June 30, 2022. Cause: Form HUD-9250 was submitted by management. The mortgage company transferred the amount from the replacement reserve to the insurance escrow. In addition, the mortgage company issued a check to the Company. Recommendation: Due to cash flow constraints, the Company was not able to repay the replacement reserve for the duplicate release. The Company will repay the replacement reserve when cash is available. Reporting Views of Responsible Officials: Management agrees with the finding. The company will repay the replacement reserve when cash is available.