Finding Text
Finding reference number: #2023-001
Assistance Listing title and number (federal award identification number and year): Supportive Housing for Persons with Disabilities, Assistance Listing No. 14.181 (101-HD029 and 2004)
Auditor non-compliance code: N – Reserve for Replacements Deposits
Finding resolution status: In process
Universe population size: In universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $7,904
Statement of condition #2023-001: The Corporation did not make $6,943 of the total required reserve for replacement deposits during the year ended March 31, 2023. Additionally, the Corporation did not make the required reserve for replacements deposits of $579 and $382 to correct the underfunded amount for the years ended March 31, 2022 and 2021, respectively.
Criteria: Section 26(c) of the PRAC requires monthly deposits into a separate reserve for replacements account.
Effect or potential effect: The Corporation is not in compliance with the terms of the PRAC. At March 31, 2023, the reserve for replacements account is underfunded by $7,904.
Cause: Management did not make the required monthly reserve for replacements deposits.
Recommendation: Management should make all required deposits to the reserve for replacements fund. Management should transfer $7,904 from the operating account to the reserve for replacements fund.
Completion date: March 31, 2024 Management response: Agreed. Management concurs with the finding and the auditor's recommendation. The Corporation will make an additional deposit of $7,904 to the reserve for replacements fund.