Finding 1074642 (2023-003)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-09-25
Audit: 320968
Organization: Rev. Dr. Clay Evans Manor (LA)
Auditor: Wharton CPA LLC

AI Summary

  • Issue: Management missed two monthly deposits of $15,000 into the reserve account.
  • Requirement: The Regulatory Agreement mandates these deposits to maintain compliance.
  • Follow-up: Ensure management follows the Regulatory Agreement for future deposits.

Finding Text

Condition: Management failed to make two required monthly deposits in the amount of $15,000 into the reserve for replacement bank account. Criteria: According to the Regulatory Agreement, “mortgagor will establish and maintain a reserve fund for replacements in a separate account in a bank…Concurrently with the effective commencement of rental assistance payments under the Project Rental Assistance Contract, the Mortgagor will deposit an amount…per month unless a different date or amount is approved in writing by HUD”. Cause: The cause is undeterminable. Effect: The Project did not comply fully with the HUD regulatory agreement. Recommendation: I recommend management adhere to the Regulatory Agreement as it relates to required monthly deposits into the reserve for replacement account.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 498198 2023-001
    Significant Deficiency
  • 498199 2023-002
    Significant Deficiency
  • 498200 2023-003
    Significant Deficiency
  • 498201 2023-004
    Significant Deficiency
  • 498202 2023-005
    Significant Deficiency
  • 1074640 2023-001
    Significant Deficiency
  • 1074641 2023-002
    Significant Deficiency
  • 1074643 2023-004
    Significant Deficiency
  • 1074644 2023-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $6.45M
14.195 Section 8 Housing Assistance Payments Program $691,627
14.191 Multifamily Housing Service Coordinators $66,693