Finding 1229016 (2026-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2026
Accepted
2026-09-08

AI Summary

  • Core Issue: O’Brien Road Senior Apartments missed a required monthly deposit to the reserve for replacements account, making the payment late.
  • Impacted Requirements: This delay violates the project's regulatory agreement with HUD, which mandates timely deposits.
  • Recommended Follow-up: Management should ensure sufficient operating cash is available to meet future deposit deadlines and maintain compliance.

Finding Text

Finding 2026-001: Supportive Housing for the Elderly (Section 202), Federal Assistance Listing Number 14.157 Criteria: O’Brien Road Senior Apartments is required to make monthly deposits into the reserve for replacements account in accordance with the project’s regulatory agreement with HUD. Condition: During our review of the reserve for replacements activity in 2026, we noted that the property did not make the March payment until April 10, 2026. Questioned Costs: There are no questioned costs, this finding relates to timing of payments. Context: There are 12 required payments during the year with all payments being tested. Cause: Management indicated that the deposit was not made as there was insufficient operating cash available during the month the deposit was due. Effect: O’Brien Road Senior Apartments is out of compliance with their regulatory agreement with HUD.

Corrective Action Plan

CORRECTIVE ACTION PLAN FOR THE YEAR ENDED MARCH 31, 2026 U.S. Department of Housing and Urban Development Loretto O’Brien Road Housing Development Fund Company, Inc. (O’Brien Road Senior Apartments), HUD Project No. 014-EE262/NY06-S061-007 respectfully submits the following corrective action plan for the year ended March 31, 2026. Name and address of independent public accounting firm: Bonadio & Co., LLP 432 North Franklin Street #60 Syracuse, New York 13204 Audit period: April 1, 2025 – March 31, 2026 The findings from the 2026 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT None FINDINGS – FEDERAL AWARD PROGRAM AUDIT (Continued) Finding 2026-001: Supportive Housing for the Elderly (Section 202), Federal Assistance Listing Number 14.157 Recommendation: Our auditor’s recommended that we ensure sufficient operating cash flow to make all required reserve for replacement deposits in the future. Views of management and planned corrective action: Management concurs. The March payment was made on April 10, 2026. Action Taken: The March payment was made on April 10, 2026. Completion Date: April 10, 2026 Name of Contact Person Responsible for Corrective Action: John Lutz, VPF, (315) 424-1821

Categories

HUD Housing Programs

Other Findings in this Audit

  • 1229015 2026-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
14.157 SUPPORTIVE HOUSING FOR THE ELDERLY $105,877