Finding Text
Finding number : 2023-001
ALN: 14.157 - Supportive Housing for the Elderly
Grantor: HUD
Questioned Costs: $0
Criteria:
Section 202 Projects are generally required to make monthly deposits to a replacement reserve account in an amount determined periodically by HUD.
Description of Condition:
The Project failed to make the December deposit to the replacement reserve and did not catch up the deposits when the December voucher was deposited in early
January.
Cause of Condition:
The Project did not get is rental subsidy request which included three months of a retroactive rent increase leaving it in a severe cash shortage.
Effect of Condition:
The replacement reserve account is under funded by the $2,101 monthly deposit for December.
Recommendations:
Care should be taken to catchup any missing deposits and return approved loans when the missing vouchers are eventually deposited.
Managements Views and Corrective Action Plan:
Management's views and corrective action plan is included at the end of this report after the summary schedule of prior audit findings and status.