Finding 1131649 (2024-001)

Finding 2024-001 – Reserve for Replacement Required Deposits Information on the Federal Program: Department of Housing and Urban Development, AL 14.157 Supportive Housing for the Elderly Questioned Costs: None How the questioned costs were computed: N/A Condition: The required monthly deposit to the reserve for replacement was made for 9 out of 12 months during the year ended December 31, 2024. Criteria: An amount, as required by HUD, is to be deposited monthly in the reserve fund (Regulatory Agreement, item 5 A). Cause: The requirement to monthly deposit to the reserve for replacement was not met due to cash flow. Effect: The monthly deposits to the reserve for replacement was not made in accordance with HUD guidelines. Repeat Finding: No Recommendation: Financial management of the project should be reviewed to improve cash flow so the required monthly deposits to the reserve for replacement can be made. Views of Responsible Officials and Planned Corrective Actions: Beloit Assisted Living, Inc. agrees with the finding and will review policies and procedures to ensure timely remittance.