Finding 1075878 (2022-001)

Federal agency: U.S. Department of Housing and Urban Development Federal program title: Supportive Housing for the Elderly Section 202 CFDA Number: 14.157 Award Period: Year Ended September 30, 2022 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: Failure to make all required reserve for replacement deposits. Condition: The Organization failed to timely make all of its required deposits to its reserve for replacement account during the year ended September 30, 2022. In accordance with the Organization's regulatory agreement, the Organization is required to make all deposits on a monthly basis. Cause: The Organization failed to make the July 2022 and August 2022 deposits to reserve for replacement account within a timely manner. Effect: All required monthly deposits were not made to the reserve for replacement in accordance with the Organization's regulatory agreement with HUD. Questioned costs: $ 3,428 Context: Two required reserve for replacement deposits were not made in a timely manner. Recommendation: The Organization should establish procedures to ensure all reserve for replacement amounts are deposited in a timely fashion. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding. The Organization has made corrective deposits to the reserve for replacement account in the months following the missed deposits prior to the year ended September 30, 2022.