FAC Explorer

Finding 1215546 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-05-26
Audit: 402211
Organization: Farrell-Bell Senior Housing Apartments, Inc. 073-Ee119 (IN)
Auditor: AGRESTA STORMS & O'LEARY

AI Summary

  • Unauthorized Withdrawal: The Corporation took $35,000 from the replacement reserve account without HUD's approval.
  • Regulatory Non-Compliance: This action has left the reserve account underfunded, violating the regulatory agreement.
  • Action Required: The Corporation plans to reimburse the reserve account when funds are available.

Finding Text

Finding No. 2025-001 Statement of Condition: The Corporation made an unauthorized withdrawal from the replacement reserve account in a prior year. Criteria: The Corporation is required to receive authorization from HUD prior to withdrawing funds from the reserve account. Questions Costs: $35,000 Effect: The replacement reserve account is underfunded causing non-compliance with the regulatory agreement. Cause: The Corporation withdrew cash from the reserve account to pay for operating expenses due to delays in PRAC being renewed resulting in the account being underfunded. Recommendation: The Corporation should reimburse the replacement reserve account when funds are available. Management Response: Management agrees with the finding and will reimburse the replacement reserve account when funds are available.

Corrective Action Plan

Auditee: Farrell-Bell Senior Housing Apartments, Inc. HUD Project Number: 073-EE119 Audit Firm: Agresta, Storms & O’Leary, PC Audit Period Ended December 31, 2025 Corrective Action Plan Prepared by: Name: John Renner Position: Chief Financial & Administrative Officer, United Church Homes, Inc. Telephone Number: 740-382-4885 A. Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Finding No. 2025-001 A. Comments on the Finding and Each Recommendation: Management agrees with the finding. Management is aware withdrawals from reserve must have HUD approval and account must be fully funded. B. Action Taken or Planned on the Finding: Management will deposit the funds into the replacement reserve when available.

Categories

HUD Housing Programs

Programs in Audit

ALN Program Name Expenditures
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $265,076