Finding 1055318 (2023-001)

-
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-07-19
Audit: 315508
Organization: Palermo Lakes, Inc. (FL)

AI Summary

  • Core Issue: The Project has a shortfall of $46,320 in escrow deposits needed for taxes and insurance.
  • Impacted Requirements: Failure to fund escrow accounts as mandated by the regulatory agreement.
  • Recommended Follow-Up: Ensure timely monthly deposits to escrow accounts; new procedures are in place to address this by 12/31/2024.

Finding Text

FINDING No. 2023-001:Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information On Universe Population Size: Escrow accounts. Sample Size Information: Escrow accounts. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by the regulatory agreement, the Project is required to pay, when due, all taxes, assessments, and other charges. Statement of Condition: The Project is deficient in funding escrow deposits in the amount of $46,320, as required by HUD. Cause: The Project did not properly fund the escrow accounts based on current period insurance premiums and tax rates. Effect or Potential Effect: The escrow deposits are not sufficient to meet future obligations. Auditor Non-Compliance Code: Z- Other. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor's recommendations will be adopted. Recommendation: The Project shaould make sufficient monthly deposits to the escrow accounts in a timely manner. Response Indicator: Agree. Completion date: 12/31/2024 Response: New procedures have been implemented to ensure appropriate amounts are reserved in escrow.

Categories

HUD Housing Programs Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly - Capital Advance $9.37M
14.239 Home Investment Partnerships Program $1.65M
14.157 Supportive Housing for the Elderly - Prac $573,814