Finding 1130725 (2024-001)

- Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2024
Accepted
2025-04-07
Audit: 352863
Organization: Hickory Lane One, INC (MD)

AI Summary

  • Core Issue: The Corporation failed to make required monthly deposits to the Replacement Reserve account due to insufficient cash flow from rental assistance payments.
  • Impacted Requirements: The Replacement Reserve account is underfunded and not compliant with the Regulatory Agreement.
  • Recommended Follow-Up: The Corporation should deposit $11,668 into the Replacement Reserve account as cash flow allows.

Finding Text

2024-1 14.157 Supportive housing for the elderly Federal Award Finding In process N/A N/A No The Regulatory Agreement requires monthly deposits to the Replacement Reserve account. The Corporation did not make the required deposits to the Replacement Reserve account. Lack of cash flow due to lack of receipt of rental assistance payments. The Project's Replacement Reserve account is underfunded and is not compliant with the Regulatory Agreement. N - Reserve for Replacements Deposits 052-EE035 $11,668 The Corporation, despite multiple efforts from management, did not receive the rental assistance payments from HUD during the year and thus did not have the cash flow to be able to make the deposits to the Replacement Reserve account in the amount of $11,668. The Corporation should deposit $11,668 into the Replacement Reserve account as cash flow permits.

Categories

Questioned Costs HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $75,159