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-EE166-WAH-NP and 2002
Auditor non-compliance code: N – Reserve for Replacement Deposits
Finding resolution status: In process
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: N/A
Statement of condition 2024-001: During the year ended December 31, 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 $20,532 per year.
Effect: The Corporation is not in compliance with the HUD regulatory agreement and the reserve for
replacements is underfunded by $1,711 at December 31, 2024.
Cause: The Corporation did not have the available cash flow to make the full annual deposit.
Recommendation: Management should make a deposit to the reserve for replacements for $1,711
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 a suspension of deposits
from HUD.
Management's response: Management concurs with the finding and agrees with the auditor's
recommendation. Management will make the delinquent deposit in 2025.