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-EH518-WAH-NP and 1993 Auditor non-compliance code: N – Reserve for Replacement Deposits Finding resolution status: Resolved 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: U.S. Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $2,423 Statement of condition 2025-001: During the year ended June 30, 2025, the Corporation did not make the require deposits to the reserve for replacements. Criteria: Pursuant to the HUD regulatory agreement, the Corporation is required to make deposits to the reserve for replacements in the required amount of $29,076. Effect: The Corporation is not in compliance with the HUD regulatory agreement and the reserve for replacements is underfunded by $2,423 at June 30, 2025. Cause: The Corporation's deposits to the reserve for replacements were $2,423 less than the required deposits by HUD. Recommendation: Management should make a deposit to the reserve for replacements for $2,423 for the delinquent deposits. In future periods, management should fund the reserve for replacements on an annual basis as required by the HUD regulatory agreement or request HUD approval for a suspension of deposits. Management's response: Management concurs with the finding and agrees with the auditor's recommendation. Management made a deposit of $2,423 in July 2025 for the delinquent deposits.