Finding Text
Finding reference number: 2025-001 Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing 14.157 (121-EE169 and 2005) Auditor non-compliance code: N-Reserve for Replacements Deposits Finding resolution status: Completed Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $5,692 Statement of condition 2025-001: All the required monthly reserve for replacements deposits were not made during the year ended September 30, 2025. Criteria: The Regulatory Agreement requires monthly deposits into a separate replacement reserve account in the amount of $4,719. Effect: The Corporation is not in compliance with the terms of the Regulatory Agreement. The reserve for replacements account is underfunded by $5,692 at September 30, 2025. Cause: Management did not make the full monthly deposit to the reserve for replacements account for four months during the year ended September 30, 2025. Recommendation: Management should transfer $5,692 into the reserve for replacements account from the operating cash account as soon as possible. Management's response: Management concurs with the finding and agrees with the recommendation and on December 17, 2025 transferred $5,692 from the operating cash account to the reserve for replacements account.