Finding Text
Finding No. - 2024-001 - CFDA 14.181 - Supportive Housing for Persons with Disabilities (Section 811)
Type of Finding – Federal Award Finding
Finding Resolution Status – In process
Criteria – Under the terms of the Regulatory Agreement with HUD, the Project is required to make monthly deposits to the replacement reserve account. The required monthly deposit amount was $580 per month through January 2024 and increased to $612 per month beginning February 2024.
Statement of Condition – The Project did not make the monthly deposits of $612 from April through June 2024. The total delinquent deposit amount at June 30, 2024 was $1,836.
Cause – The delinquent deposits to the replacement reserve at June 30, 2024 were due to cash flow shortage.
Effect or Potential Effect – The Project was not in compliance with the terms of the Regulatory Agreement with HUD.
Auditor Non-Compliance Code – N – Reserve for replacement deposits.
Questioned Costs – $1,836
Reporting Views of Responsible Officials – The Project was not able to make the monthly deposits during the three months of April through June 2024 due to the cash flow shortage.
Recommendation – We recommend the Project catch up on the delinquent deposits as soon as operating cash is available.
Auditor's Summary of the Auditee's Comments on the Findings and Recommendations – We agree with auditee’s response.
Response Indicator – Agree
Completion Date – December 31, 2024
Response – The Project will make catch-up deposits when operating cash is available.