Finding 1157565 (2024-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-09-30

AI Summary

  • Core Issue: The Project missed one monthly deposit into the replacement reserve account, violating HUD requirements.
  • Impacted Requirements: Monthly deposits must be made as per the regulatory agreement; currently, the reserve is underfunded by $1,337.
  • Recommended Follow-Up: Ensure timely payments to avoid future funding issues and maintain compliance with HUD regulations.

Finding Text

Finding number : 2024-001 ALN: 14.157 Supportive Housing for the Elderly Grantor: HUD Questioned Costs: $0 Description of Condition: Per the regulatory agreement the Project is required to make monthly deposits, as set by HUD, into the replacement reserve bank account. The Project only made eleven of the twelve required deposits. Cause of Condition: The Project is currently in a cash poor situation. The required deposit was in accounts payable causing the bank account to look funded while one payment was not actually made. Effect of Condition: Recommendations: Replacement reserve is under funded by $1,337. Care be taken to ensure the required payments are made timely.

Corrective Action Plan

Action Taken: The Project made the required 12 th replacement reserve deposit in March 2025 . The Project has also applied for a significant rent increase, effective 1/1/26, that would cure the Project' s cash issues and allow it to keep up with monthly replacement reserve deposits.

Categories

HUD Housing Programs

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $195,552