Finding Text
Condition - The reserve for replacements account is underfunded by $27,000 at September 30, 2024. 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 2023-002 from the prior year. Recommendation - We recommend that the delinquent deposits totaling $27,000 for the year ended September 30, 2024 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.