Finding 1130723 (2024-001)

-
Requirement
N
Questioned Costs
$1
Year
2024
Accepted
2025-04-07
Audit: 352855
Organization: Luther Knoll INC (KS)

AI Summary

  • Core Issue: The Organization failed to make required reserve deposits of $900 for the Supportive Housing for the Elderly program, violating the regulatory agreement.
  • Impacted Requirements: Compliance with HUD regulations and the requirement to fund a replacement reserve as outlined in the regulatory agreement.
  • Recommended Follow-Up: Ensure delinquent deposits are made and establish a plan for timely future deposits to maintain compliance.

Finding Text

S3800-001 - Title and Federal Assistance Listing Number of Federal Program: 14.157 - Supportive Housing for the Elderly; S3800-015 - Type of Finding: Federal Award Finding: S3800-016 - In process; S3800-017 - Information on Universal Population Size - N/A; S3800-018 - Sample Size Information: N/A; S3800-019 - Identification of Repeate Finding and Finding Reference Number - N/A; S3800-020 - Criteria: Pursuant to the requirements of the regulatory agreement, The Organization is required to comply with all HUD regulations and other requirements. The Regulatory Agreement establishes the requirement to fund a replacement reserve in an amount determined by HUD; S3800-030 - Statement of Condition: Durin the year ended December 31 2024, reserve deposits totaling $900 were not made as required by the regulatory agreement; S3800-032 - Cause: The Organization did not have a fund to make required deposits to fund the replacement reserve; S3800-033 - Effect or Potential Effect: The Organization is not in compliance with the terms of the regulatory agreement; S3800-035 - Auditor Non-Compliance Code: N. Reserve for replacement deposits; S3800-040 - Questioned Costs: $9000; S3800-045 - Reporting Views of Responsible Officials: The Organization did not have sufficient cash flow to make the required deposits. The management agent has reflected the delinquent reserve payments as payable at December 31 2024 and is making deposit as cash flow allows; S3800-050 - Contect: The organization did not have sufficient cash flow to make the monthly deposits in 2024; S3800-080 - Recommendation: The delinquent deposits should be funded and all future deposits should be made timely; S38300-090 - Auditor's Summary of the Auditee's Comments on the Findings and Recommendations: Auditor agrees with the auditee's comments on the finding and recommendations; S3800-130 - Response Indicator: Agree; S3800-140 - Completion Date: 12/31/2025; S3800-150 - Response: The Organization is making the delinquent deposits as cash flow allows.

Categories

Questioned Costs HUD Housing Programs Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $643