FAC Explorer

Finding 1181400 (2025-001)

Material Weakness Repeat Finding
Requirement
C
Questioned Costs
-
Year
2025
Accepted
2026-03-18
Audit: 392646
Organization: Statewide Bay Landing Ii, Inc. (RI)
Auditor: FJ & ASSOCIATES PLLC

AI Summary

  • Issue: The replacement reserve account is underfunded by $10,374 compared to last year.
  • Requirement: HUD regulations mandate specific monthly deposits to the replacement reserve account.
  • Follow-up: Management should ensure the shortfall is addressed once the approved rent increase is received in March 2024.

Finding Text

Condition: The replacement reserve account remains underfunded by $10,374 from the prior year. Criteria: HUD regulations specify the amount required to be deposited on a monthly basis to the replacement reserve account. Cause: The funding shortfall was due to the property experiencing a cash flow problem due to not receiving an approved rent increase effective March 2024 and therefore unable to make the required deposits. Recommendation: The management agent should arrange to fund the shortfall. Response: Management expects to receive the approved rent increase effective March 2024 and will fund the shortfall.

Corrective Action Plan

Management will make every effort to find resources to fund the shortfall, they expect to receive an approved rent increase that will fund the shortfall. Cynthia Langlykke, the Executive Director, will work with the Organization to resolve this matter. The anticipated completion date is December 31, 2026.

Categories

HUD Housing Programs

Programs in Audit

ALN Program Name Expenditures
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $173,641