Finding Text
Finding reference number: #2024-001
Assistance Listing (Federal award identification number and year): Supportive Housing for
Persons with Disabilities (Assistance Listing No. 14.181, 2024)
Auditor non-compliance code: N – Reserve for Replacements Deposits
Finding resolution status: Resolved
Universe population size: 12 months of deposits to the reserve for replacements
Sample size information: 12 months of deposits to the reserve for replacements
Name of Federal agency: U.S. Departments of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $548
Statement of condition #2024-001: During the year ended June 30, 2024, the Corporation did
not make the required number of deposits to the reserve for replacements.
Criteria: Pursuant to item 10(b) of the Regulatory Agreement (form HUD-92466), the Corporation
shall make monthly deposits into a separate reserve for replacements account.
Effect: The Corporation is not in compliance with the terms of the Regulatory Agreement. The reserve
for replacements account is underfunded by $548 at June 30, 2024.
Cause: Management oversight.
Recommendation: Management should transfer $548 from the operating account to the reserve for
replacements account.
Management's response: Management concurs with the finding and recommendation. On August
28, 2024, management transferred $548 to the reserve for replacements account. No further action
is required.