Core Issue: The project failed to make one required payment to the replacement reserve, resulting in an underfunding of $316.
Impacted Requirements: Compliance with HUD instructions mandates all 12 payments to the replacement reserve be made.
Recommended Follow-Up: Ensure the underfunded amount is remitted immediately to achieve compliance.
Finding Text
Federal Agency: Department of Housing and Urban Development
Federal Program Name: Supportive Housing for Persons with Disabilities
Assistance Listing Number: 14.181
Type of Finding: Significant Deficiency in Internal Control
Condition: The required contributions to the replacement reserve were underfunded by $316.
Criteria: The Project is required to make contributions to the replacement reserve in accordance with HUD instructions.
Effect: The effect is that the entity is out of compliance as not all 12 payments required by HUD were made.
Cause: The Project’s internal control system did not identify timely that the monthly transfer was not made.
Questioned Cost: $0.00
Context: 11 out of 12 payments were made timely and accurately. March 2024 was missing a deposit for $315.75.
Repeat Finding: No.
Recommendation: Remit the underfunded amount immediately.
Views of Responsible Officials and Corrective Action Plan: Funds will be remitted immediately.
Categories
HUD Housing ProgramsSignificant DeficiencyInternal Control / Segregation of Duties