Finding 1167797 (2023-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2026-01-05

AI Summary

  • Issue: The project mistakenly withdrew funds from the replacement reserve account twice for the same invoice.
  • Impacted Requirement: Proper monitoring of withdrawal requests is essential to prevent underfunding.
  • Follow-Up: Return $4,134 to the replacement reserves promptly to correct the funding shortfall.

Finding Text

Finding number :2023-001 ALN: 14.157 Supportive Housing for the Elderly Grantor: HUD Questioned Costs$0 Description of Condition: A project is allowed to withdraw money from the replacement reserve account with proper approval from HUD. Condition: The Project requested and received an approval for reimbursement of the same invoice twice. Cause of Condition: Management failed to properly monitor past requests when preparing new requests for withdrawal. Effect of Condition: Replacement reserves are underfunded by $4,134. Recommendations: Funds totaling $4,134 must be returned to the replacement reserves as soon as possible.

Corrective Action Plan

U.S. Department of Housing & Urban Development 20 Church Street, 10th floor Hartford, CT 06103 Elderly Housing Management, Inc. respectfully submits the following corrective action plan for Hearth Homes of Waterbury, Inc. (HUD PROJECT NO. Ol 7-EE108) year ended June 30, 2023, which was audited by: Bailey, Moore, Glazer, Shaefer & Proto LLP 16 Lunar Drive Woodbridge, CT 06525 The sole finding from the 6/30/2023 schedule of findings and questions costs is discussed below and numbered consistently with the numbers assigned in the schedule. FINDINGS- FINANCIAL STATEMENT AUDIT NONE FINDINGS - FEDERAL AW ARD PROGRAMS AUDIT DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Finding number 2023-001: 14.157 Supportive Housing for the Elderly Condition: The Project requested and received approval for reimbursement of the same invoice twice. Recommendation: Funds totaling $4,134 be returned to the replacement reserves as soon as possible. Action Taken: On November 25, 2025, a check in the amount of $4,134.00 was cut from the operating account. The funds have subsequently been returned to the replacement reserve account. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call Sabine Cox at (203-230-4809 ext. I 005)

Categories

Cash Management HUD Housing Programs

Programs in Audit

ALN Program Name Expenditures
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $2.04M
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $352,843