Finding Text
Finding No. - 2025-001 - Federal Assistance Listing Number 14.181 - Supportive Housing for Persons with Disabilities (Section 811) Type of Finding – Federal Award Finding Finding Resolution Status – Resolved Criteria – Under the terms of the Regulatory Agreement with HUD, the Project is required to make monthly deposits to the replacement reserve account. The required monthly deposit amount was $612 per month through January 2025 and increased to $647 per month beginning February 2025. Statement of Condition – The Project did not make the monthly deposits of $612 from September to December 2024 and $647 from February to March 2025. The total delinquent deposit amount at June 30, 2025 was $3,742. Cause – The delinquent deposits to the replacement reserve at June 30, 2025 were due to cash flow shortage. Effect or Potential Effect – The Project was not in compliance with the terms of the Regulatory Agreement with HUD. Auditor Non-Compliance Code – N – Reserve for replacement deposits. Questioned Costs – $3,742 Reporting Views of Responsible Officials – Management agrees with the finding and is implementing procedures to correct this which is further discussed in the Correction Action Plan. Recommendation – We recommend the Project catch up on the delinquent deposits as soon as operating cash is available. Auditor's Summary of the Auditee's Comments on the Findings and Recommendations – We agree with auditee’s response. Response Indicator – Agree Completion Date – September 19, 2025 Response – The Project will make catch-up deposits when operating cash is available.