Finding 1167029 (2025-004)

Federal Agency: U.S. Department of Housing and Urban Development Federal Program Name: Supportive Housing for the Elderly Assistance Listing Number: 14.157 Federal Award Identification Number and Year: WI39S961001 Award Period: 2024-2025 Type of Finding: • Significant Deficiency in Special Tests Over Compliance Criteria or specific requirement: Monthly deposits are required to be made to the replacement reserve account. Condition: Monthly deposits were not made. Deposits were made every few months and total amount deposited ties to the required total deposit for the year. Questioned Costs: None Context: Required deposits were made but they were not made monthly due to cash flow restraint. Cause: Required deposits were made but they were not made monthly due to cash flow restraint. Effect: Not in compliance with monthly requirement. Repeat Finding: N/A Recommendation: The Project should make the required deposits monthly. Views of Responsible officials and planned corrective actions: There is no disagreement with the finding. Management will make the required deposits monthly if cash flow allows.