Finding Text
Finding reference number: 2024-001
Assistance Listing (Federal award identification number and year): Supportive Housing for
the Elderly, Assistance Listing No. 14.157, 122-EH518-WAH-NP and 1993
Auditor non-compliance code: N – Reserve for Replacement Deposits
Finding resolution status: Resolved
Universe population size: The universe population size is not applicable to the finding.
Sample size information: The sample size information is not applicable to the finding.
Statistically valid sample: N/A
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $4,846
Statement of condition 2024-001: During the year ended June 30, 2024, the Corporation did not
make the required deposits to the reserve for replacements.
Criteria: Pursuant to the HUD regulatory agreement, the Corporation is required to make deposits
to the reserve for replacements in the amount of $29,076 per year.
Effect: The Corporation is not in compliance with the HUD regulatory agreement and the reserve for
replacements is underfunded by $4,846 at June 30, 2024.
Cause: The Corporation's deposits to the reserve for replacements were $4,846 less than the required
deposits by HUD.
Recommendation: Management should make a deposit to the reserve for replacements for $4,846
for the delinquent deposits. In future periods, management should fund the reserve for replacements
on an annual basis as required by the HUD regulatory agreement or request HUD approval for a
suspension of deposits.
Management's response: Management concurs with the finding and agrees with the auditor's
recommendation. Management made a deposit of $4,846 on January 3, 2025 for the delinquent
deposits.