Finding 1057879 (2023-002)

FINDING No. 2023-002: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Resolved. Information on Universe Population Size: All activity in the replacement reserve account for the year ended December 31, 2023. Sample Size Information: All replacement reserve withdrawals for the year ended December 31, 2023. Identification of Repeat Finding and Finding Reference Number: No. Criteria: In accordance with HUD, the Project should reimburse the replacement reserve account it the quoted amount on form HUD-9250 exceeds what is ultimately needed. Statement of Condition: The Project requested funds for repairs based on a quote. Ultimately, the amount needed was less and the Project did not reimburse the replacement reserve account for the excess. Cause: Management requested funds for repair work using the proposal and did not reimburse the excess funds once the invoice was received. Effect or Potential Effect: The Project kept $1,100 of the funds from the replacement reserve account. Auditor Non-Compliance Code: N – Replacement Reserve Deposits. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendation has been adopted. Recommendation: The Project should return the excess withdrawal to the replacement reserve account. Response Indicator: Agree. Completion date: 07/19/2024 Response: Procedures are in place to verify the amounts of the transfers to ensure correct amounts are transferred. The excess withdrawal has been returned.