Finding Text
FINDING No. 2023-002: Section 202 Supportive Housing for the Elderly, ALN 14.157
Finding Resolution Status: Unresolved.
Information on Universe Population Size: Escrow account.
Sample Size Information : Escrow account.
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 $26,385 as required by HUD.
Cause: The Project did not properly fund the escrow account 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 should make sufficient monthly deposits to the escrow account in a timely manner.
Response Indicator: Agree.
Completion Date: 12/31/2024
Response: New procedures have been implemented to review the deposits each month to ensure amounts are proper.