Finding Text
2024-003 ALN# 14.157 Supportive Housing for the Elderly, June 30, 2024 -
Special Tests and Provisions
Criteria: The Project is required to collect tenant security deposits and make monthly deposits into
the established reserve fund to aid in funding extraordinary maintenance and repair and
replacement of capital items.
Condition: The project did not collect tenant deposits and make the required monthly deposit of
$1,811.86 into the reserve account during the year. We consider this finding to be an instance of
noncompliance with regard to the Special Tests and Provisions compliance requirement.
Effect: By not collecting tenant deposits and making monthly deposits it would be possible for the
Project to not have funding for capital improvements Questioned Costs: $21,742
Cause: The Project experienced cash shortages in the operating account leading to funds not being
available to deposit into the reserve fund.
Recommendation: The Project should consider reevaluating their established procedures and
controls currently in place to ensure full compliance regarding special tests and provisions.
Views of Responsible Officials: Management agrees with the findings and a response is included
in the Corrective Action Plan.