Finding Text
Condition - The reserve for replacements account is underfunded by $15,000 at September 30, 2023.
Criteria - As part of Special Tests and Provisions related to Assistance Listing Number 14.157-Supportive Housing for the Elderly, the Corporation is required to deposit $1,000 in a reserve for replacements account on a monthly basis.
Effect - The Corporation was not in compliance with the above HUD regulations.
Cause - The reserve for replacements account was not adequately funded during the year.
Statistical Sampling - The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding - This is a repeat finding of 2022-001 from the prior year.
Recommendation - We recommend that the delinquent deposits totaling $15,000 for the year ended September 30, 2023 be deposited into the reserve for replacements account as soon as possible.
Management's Reply - (a) Comments on the finding and recommendation: Management agrees with the finding. Management also agrees with the recommendation. Please see below for action taken.
(b) Action taken: Management has deposited the underfunded amount as of the date of this report.