Finding Text
S3800-010: Finding Reference Number 2025-003 (Material Weakness) S3800-011: Program Information Federal Program: Supportive Housing for the Elderly (Section 202) Federal Agency: U.S. Department of Housing and Urban Development (HUD) Assistance Listing #: 14.157 Pass-through Entity: None Federal Award Identification Number and Year: N/A Type of Compliance Finding: N - Special Tests and Provisions S3800-015: Type of Finding Federal Awards S3800-016: Finding Resolution Status Unresolved S3800-017: Information on Universe Population Size N/A S3800-018: Sample Size Information N/A S3800-019: Identification of Repeat Finding and Finding Reference Number N/A S3800-020: Criteria In accordance with the regulatory agreement subsection 5(a), the Organization is required to deposit $2,000 per month to the reserve for replacement account. S3800-030: Statement of Condition During our audit of the Organization’s fiscal year ended March 31, 2025 federal award program, we noted the Organization failed to make any deposits into the reserve for replacement account. S3800-032: Cause The Organization failed to make the required monthly deposits for the entire year due to cash flow limitations. S3800-033: Effect or Potential Effect The Organization was not in compliance with the regulatory agreement to make the required monthly deposits into the reserve for replacement account. S3800-035: Auditor Non-Compliance Code: N – Reserve for replacements deposits S3800-040: Questioned Costs $24,000 S3800-045: Reporting Views of Responsible Officials Management agrees with the finding. S3800-050: Context The Organization failed to make the required monthly deposits for the entire year due to cash flow shortage. S3800-080: Recommendation The Auditor recommends the Organization deposit the required monthly reserve for replacement amounts as soon as possible and/or request waiver of the deposit requirement from HUD. S3800-090: Auditor’s Summary of the Auditee’s Comments on the Findings and Recommendations Auditee agreed with our recommendation. S3800-130: Response Indicator Agree S3800-140: Completion Date or Proposed Completion Date September 30, 2025 S3800-150: Response See Corrective Action Plan