Finding 1159878 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2025-10-03

AI Summary

  • Answer: The project did not make the required monthly deposits to the replacement reserve account.
  • Trend: This is a repeat finding, indicating ongoing issues with compliance.
  • List: Follow up by ensuring monthly deposits meet HUD requirements and addressing the shortfall of $468.

Finding Text

Replacement Reserve Deposits: Criteria - Replacement reserve deposits should be made monthly in an amount determined by HUD; Condition - During the year ended June 30, 2025, insufficient deposits were made to the replacement reserve account; Cause - The project failed to make the required deposits to the replacement reserve; Effect or Potential Effect - The project is in violation of HUD replacement reserve procedures; Questionsed Costs - None; Perspective - Deposits totaling $4,926 were expected in the period. Deposits totaling only $4,458 were made during the period; Repeat Finding - Yes

Corrective Action Plan

Replacement Reserve Deposits: Comments on Finding and Recommendation - The Corporation acknowledges that sufficient deposits were not made due to the outstanding subsidies not received until the fiscal year 2026; Actions Taken or Planned - The Corporation made the deficient required reserve deposits once the outstanding subsidies were received in fiscal year 2026

Categories

HUD Housing Programs

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $84,697