Finding Text
Finding reference number: 2025-001 Assistance Listing (Federal award identification number and year): Supportive Housing for the Elderly, Assistance Listing No. 14.157, 122-EE136-WAH-NP and 2001 Auditor non-compliance code: N – Reserve for Replacement Deposits Finding resolution status: Resolved Universe population size: 12 months of deposits to the reserve for replacements Sample size information: 12 months of deposits to the reserve for replacements Statistically valid sample: Yes Name of Federal agency: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $27,908 Statement of condition 2025-001: As of December 31, 2025, deposits to the reserve replacement account of $27,908 has not been made. Criteria: Pursuant to item 5(a) of the Regulatory Agreement (form HUD-92466), the Corporation shall make monthly deposits into a separate reserve for replacements account in the amount prescribed by HUD. At December 31, 2025, $27,908 of the required monthly deposits had not been made. Effect: The Corporation is not in compliance with the regulatory agreement and the reserve for replacements is underfunded by $27,908 at December 31, 2025. Cause: The Corporation did not increase the monthly deposit according to the HUD approved 9250 requiring the increase in reserve for replacement deposits Recommendation: Management should make a deposit to the reserve for replacements for $27,908 for the delinquent deposits. In future periods, management should fund the reserve for replacements on an annual basis as required by the regulatory agreement. Management's response: Management concurs with the finding and agrees with the auditor's recommendation. Management made the delinquent deposit on March 11, 2026.