Finding 1076065 (2023-002)

-
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-09-30

AI Summary

  • Core Issue: The Project has a funding shortfall of $22,634 in escrow accounts needed for taxes and insurance.
  • Impacted Requirements: The Project must comply with the regulatory agreement by ensuring timely payments for all taxes and assessments.
  • Recommended Follow-Up: Ensure monthly escrow deposits are made on time to cover future obligations, with a completion target of 12/31/2024.

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 accounts. Sample Size Information: Escrow accounts. 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 $22,634. Cause: The Project did not properly fund the escrow accounts 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 accounts in a timely manner. Respon se Indicator: Agree. Completion Date: 12/31/2024 Response: RCOA has taken out as policy for the Project with Forth Insurance company, an initial down payment was furnished, and additional sequential payment has been furnished to the policy. Proof of policy can be furnished if required.

Categories

Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $848,100
14.157 Supportive Housing for the Elderly - Prac $40,697
14.157 Supportive Housing for the Elderly - Covid 19 Prac $6,007