Current Findings on the Schedule of Findings, Questioned Costs and Recommendations Financial Statement Audit None Finding 2022-001 - Major Federal Award Programs Audit Comments on the Finding and Recommendation We concur with the auditors finding as follows: In 2017, HUD had approved a loan to opera...
Current Findings on the Schedule of Findings, Questioned Costs and Recommendations Financial Statement Audit None Finding 2022-001 - Major Federal Award Programs Audit Comments on the Finding and Recommendation We concur with the auditors finding as follows: In 2017, HUD had approved a loan to operations from the reserve for replacement to be repaid upon receipt of the past due subsidy. When the subsidy was received, the property was unable to repay the loan because of an unexpected increase in vacancies as a result of tenant turnover. The loan has not yet been repaid. During 2022, property transferred $9,000 of reserve for replacement funds to operations to fund payroll, the funds have not been reimbursed as of 12/31/22. Additionally, monthly deposits to the reserve for replacement have not been resumed due to poor cash flow. Action(s) Taken or Planned on the Finding In September 2022, Owner, Management, and HUD met and a plan was made to reset and waived the past due required reserve funding while a Budget Budget Based increase was submitted and approved and new reserve funding amounts established. This was completed and new reserve requirements established effective February 2024.