FAC Explorer

Finding 1223955 (2026-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2026
Accepted
2026-07-17
Audit: 407361
Organization: Anchor Community, Inc. Dba Redi Anchor Apts 101-Hd029 (CO)
Auditor: DAUBY O'CONNOR & ZALESKI LLC

AI Summary

  • Core Issue: The Corporation's reserve for replacements fund is not in an interest-bearing account, violating the Regulatory Agreement.
  • Impacted Requirements: The Regulatory Agreement mandates that the reserve for replacements fund must be held in a separate, interest-bearing account.
  • Recommended Follow-Up: Management should promptly transfer the reserve for replacements fund into an interest-bearing account to ensure compliance.

Finding Text

Finding reference number: 2026-001 Assistance Listing (Federal award identification number and year): Supportive Housing for Persons with Disabilities, Assistance Listing No. 14.181 (Project identification number 101-HD029, 2004) Auditor non-compliance code: N - Reserve for Replacements Deposits Finding resolution status: In Process 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: Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: N/A Statement of condition 2025-002: At March 31, 2026, the Corporation's reserve for replacements fund was not invested in an interest bearing account. Criteria: The Regulatory Agreement requires that the reserve for replacements fund be held in a separate, interest-bearing account. Effect: The Corporation is not in compliance with the terms of the Regulatory Agreement. Cause: The Corporation did not invest the reserve for replacements fund in an interest-bearing account. Recommendation: Management should transfer the reserve for replacements fund into an interest-bearing account. Management Response: Agreed. Management concurs with the finding and auditor's recommendation.

Corrective Action Plan

Name of auditee: Anchor Community, Inc. HUD auditee identification number: 101-HD029 Name of audit firm: Dauby O'Connor & Zaleski, LLC Period covered by the audit: Year ended March 31, 2026 CAP prepared by Name: Tashawndra Welch Position: Chief Financial Officer Telephone number: 901-435-7764 Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Finding 2026-001: At March 31, 2026, the Corporation's reserve for replacements fund was not invested in an interest-bearing account. Comments on the Finding and Each Recommendation: The Agent should transfer the reserve for replacements fund into an interest-bearing account. Action(s) taken or planned on the finding: Agreed. The Agent concurs with the finding and auditor's recommendation.

Categories

Subrecipient Monitoring

Programs in Audit

ALN Program Name Expenditures
14.239 HOME INVESTMENT PARTNERSHIPS PROGRAM $340,446
14.181 SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES $133,959