Finding Text
Information on federal program
Section 202 Supportive Housing for the Elderly Federal Assistance Listing Number 14.157.
Questioned costs
$0
Criteria
The Organization is required to make deposits into an escrow account to fund tax and insurance payments
for the fiscal year.
Condition
The Organization’s escrow cash account did not have adequate deposits as of June 30, 2023.
Cause
The Organization had inadequate cash on hand to fund the escrow account.
Effect
The Organization may not be able to pay for their taxes and insurance for the upcoming year.
Recommendation
Management should budget for monthly tax and insurance escrow deposits and request a rent increase to
prevent future shortfalls in escrow cash.
Views of Management
Management concurs. Auditors’ summary of the auditee’s comments on the findings and recommendations
Management will request a rent increase and make deposits to the escrow account sufficient to cover future
tax and insurance costs.