Finding 1168860 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-01-13
Audit: 381211
Organization: Ahepa 250-Ii, Inc. (CT)

AI Summary

  • Core Issue: The project did not make required monthly deposits of $104,105 into the Replacement Reserve account as per HUD regulations.
  • Impacted Requirements: Failure to comply with the monthly deposit requirement can lead to insufficient funds for future capital needs.
  • Recommended Follow-Up: Management should enhance monitoring of internal controls to ensure timely compliance with deposit requirements.

Finding Text

S3800-010 Finding reference number 2025-001 S3800-011 Title and AL number of federal program Supportive Housing for the Elderly #14.157 S3800-015 Type of finding Federal Award Finding and Internal Control Over compliance S3800-016 Finding resolution status Complete S3800-017 Information on universe population Not applicable S3800-018 Sample information Not applicable S3800-019 Identification of repeat finding and finding reference number Not applicable S3800-020 Criteria Owners are required to make monthly deposits into the Replacement Reserve account in the amount specified in the Regulatory Agreement. S3800-030 Statement of condition The project failed to make the required monthly deposits into the Replacement Reserve account as stipulated in the HUD Regulatory Agreement in prior year of $104,105. S3800-032 Cause The owner failed to deposit the monthly deposit requirement and did not implement adequate internal controls to ensure compliance with HUD-approved funding levels. S3800-033 Effect or potential effect Underfunding the Replacement Reserve account may result in inadequate resources to address future capital needs. S3800-035 Auditor non-compliance code N - Replacement reserve deposits S3800-040 Questioned costs $ - S3800-037 Property associated with the finding 017-EE-005 S3800-038 Questioned costs $ - S3800-045 Reporting views of responsible officials Management Concurs S3800-080 Recommendation Management should monitor internal controls over compliance and ensure the required monthly deposit is corrected in a timely manner. S3800-090 Auditors' Summary of the Auditee's Comments on the Findings and Recommendations Management Concurs S3800-130 Response indicator Agree S3800-140 Anticipated Completion Date Complete S3800-150 Response The funds were deposited July 16, 2024.

Corrective Action Plan

Management agrees with the finding and the funds were deposited to the reserve on July 16, 2024.

Categories

HUD Housing Programs Reporting Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly - Section 202 HUD Capital Advance $3.97M
14.157 Supportive Housing for the Elderly - Project Rental Assistance Contract $607,382