Finding Text
Finding No. 2024-003: Section 202 Supportive Housing for the Elderly, ALN 14.157
Finding Resolution Status: Unresolved.
Information on Universe Population Size: All replacement reserve deposits for the year ended June 30, 2024.
Sample Size Information: All replacement reserve deposits for the year ended June 30, 2024.
Identification of Repeat Finding and Finding Reference Number: No.
Criteria: In accordance with HUD, required monthly deposits must be made to the Project’s reserve for replacement account.
Statement of Condition: The Project underfunded the account by $15,198, and did not fund the account with the correct amount on a monthly basis.
Cause: The Project did not make regular monthly deposits into the replacement reserve account for approximately eight months.
Effect or Potential Effect: Deficiently funded reserve for replacements.
Auditor Non-Compliance Code: N – Reserve for Replacements Deposits.
Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendation will be adopted.
Recommendation: Management should implement procedures to ensure the required monthly funding amount is deposited into the replacement reserve account monthly.
Response Indicator: Agree.
Completion Date: 06/30/2025
Response: The Project agrees with the finding and the auditor’s recommendations will be adopted. Deposits are made on a monthly basis with balances being monitored by property leadership and accounting.
Total Questioned Costs – Department of Housing and Urban Development $15,198