Finding 1166823 (2025-001)

Material Weakness Repeat Finding
Requirement
P
Questioned Costs
-
Year
2025
Accepted
2025-12-29

AI Summary

  • Core Issue: The reserve for replacements was underfunded by $Agg as of June 30, 2025.
  • Impacted Requirements: Compliance with HUD's regulatory agreement requires monthly deposits to the reserve.
  • Recommended Follow-Up: Ensure the necessary transfer is made promptly; management confirmed funding occurred on December 3, 2025.

Finding Text

At June 30,2025, the reserve for replacements was underfunded by $Agg. Federal Program: Capital advance grant and project rental assistance contract Federal Award ldentification: 083-8E077 Assistance Listing Number: 14.157 Federal Agency: U.S. Department of Housing and Urban Development Criteria. The HUD regulatory agreement, or amendments to that agreement, requires the borrower to make monthly reserve for replacements deposits. Cause. Unknown. Effect. The borrower is not in compliance with the terms of the HUD regulatory agreement. 29 Recommendation. We recommend the appropriate transfer be made as soon as possible. Management Response. The underfunded reserve for replacements account was funded December 3, 2025.

Corrective Action Plan

The underfunded reserve for replacements account was funded December 3, 2025.

Categories

HUD Housing Programs

Programs in Audit

ALN Program Name Expenditures
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $55,795