Finding Text
Condition - The reserve for replacements account is underfunded by $11,232 for the year ended June 30, 2025. Criteria - As part of Special Tests and Provisions related to Assistance Listing Number 14.157 - Supportive Housing for the Elderly, the Company is required to deposit $3,744 in a reserve for replacements account on a monthly basis. Effect - The Company 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. Recommendation - We recommend that the delinquent deposits totaling $11,232 for the year ended June 30, 2025 be deposited into the reserve for replacements account as soon as possible. Management's Response - (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 informed us that the amount will be deposited as soon as cash flow and operational circumstances permit.