Finding 1115200 (2024-001)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2024
Accepted
2025-03-28
Audit: 349462
Organization: Coleman Apartments, Inc. (OH)
Auditor: Hw&co

AI Summary

  • Core Issue: The replacement reserve account was underfunded due to one missed monthly deposit of $230.
  • Impacted Requirements: Monthly deposits to the replacement reserve account must comply with the regulatory agreement.
  • Recommended Follow-Up: Ensure the underfunded amount is deposited, which management has agreed to complete by February 26, 2025.

Finding Text

Title and CFDA Number of Federal Program: Supportive Housing for Persons with Disabilities CFDA Number 14.181 (S3800-011) Type of Finding: Federal Award Finding (S3800-015) Finding Resolution Status: Resolved (S3800-016) Information on Universe Population Size: All monthly replacement reserve deposits for the year ended December 31, 2024. (S3800-017) Sample Size Information: 12 (S3800-018) Identification of Repeat Finding Reference Number: Not applicable (S3800-019) Criteria: In accordance with the regulatory agreement, a monthly deposit in the amount of (S3800-020) $230 is required to be made to the replacement reserve account. Statement of Condition: The replacement reserve account was underfunded during the year. (S3800-030) Criteria: One monthly deposit was not made for the replacement reserve account during the (S3800-020) year. Effect or Potential Effect: The replacement reserve account was underfunded at year-end. (S3800-033) Auditor Noncompliance Code: N – Reserve for Replacements Deposits (S3800-035) Questioned Cost: $230 (S3800-040)Reporting Views of Responsible Officials: See management’s response (S3800-150) (S3800-045) •FHA/Contract Number: 042-HD035 (3800-037) •Questioned Costs: $230 (3800-038) Context: Replacement reserve funds should be deposited in accordance with the (S3800-050) regulatory agreement. Recommendation: We recommend that the underfunded amount be deposited into the (S3800-080) replacement reserve account. Auditor’s Summary of the Auditee’s Comments on the Finding and Recommendation: (S3800-090) Management agreed with the recommendation. •Response Indicator: Agree (3800-130) •Completion Date: February 26, 2025 (3800-140) Response: (S3800-1500) Management agreed with the recommendation and corrected the finding prior to issuance of the audit. Contact Person: Thomas Lyzen (S3800-160 to 180)

Categories

Questioned Costs Reporting

Other Findings in this Audit

  • 538758 2024-001
    Significant Deficiency
  • 538759 2024-001
    Significant Deficiency
  • 1115201 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $51,176