Finding Text
Assistance Listing title and number (federal award identification and year): Supportive Housing for Persons with Disabilities, Assistance Listing No. 14.181 (Project identification number 074-EH184 and IA05Q881007 and 1992)
Auditor non-compliance code: N - Reserve for Replacements Deposits
Finding resolution status: Cleared
Universe population size: The 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: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $19,200
Statement of Condition 2024-001 (Assistance listing 14.181): The Corporation did not make all of the HUD required reserve for replacement deposits for the year ended October 31, 2024.
Criteria: Pursuant to Section 5 of the Regulatory Agreement, the Property is required to make monthly deposits to the reserve for replacements fund as required by HUD.
Effect: The Corporation is not in compliance with the Regulatory Agreement and the reserve for replacements is underfunded by $19,200 at October 31, 2024.
Cause: Due to cash flow shortages, the deposits to the reserve for replacements for the year ended October 31, 2024 were $19,200 less than the deposits required by HUD.
Recommendation: Management should transfer $19,200 from the operating cash account to the reserve for replacements fund or request a suspension of monthly deposits from HUD.
Completion date: January 9, 2025
Management Response: Agree. On January 9, 2025, management transferred $19,200 from the operating account to the reserve for replacements fund.