Finding Text
Finding #2023-001: Section 202 Supportive Housing for the Disabled, Assistance Listing 14.157 and Section 8 Housing Assistance Payments Program, Assistance Listing 14.195
Type of Finding: Significant Deficiency
Condition: The Project did not make 12 monthly deposit during the audit period ($490 payments for 5 months and $502 payments for 7 months) totaling $5,964 to the replacement reserve account.
Criteria: The HUD regulatory agreement requires monthly deposits into the replacement reserve account and requires HUD’s approval for any withdrawals from the replacement reserve.
Questioned cost: $2,450
Effect: Replacement reserve account is underfunded and the Project is in violation of its Regulatory Agreement.
Cause: Lack of operating funds available
Repeat Finding:
Yes
Recommendation: We recommend the Project deposit $2,450 into the replacement reserve account.
Management’s View: Management is in agreement with the finding. The corrective action plan is included in the audit report.
Auditor’s Comment:
On August 7, 2024, the Project deposited $2,450 into the replacement reserve account.