Finding 1336 (2023-001)

-
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2023-11-07
Audit: 2491
Organization: Prairie Estates (MO)
Auditor: Wipfli LLP

AI Summary

  • Core Issue: Prairie Estates missed the required monthly deposit to the replacement reserve for March 2023.
  • Impacted Requirements: This failure violates the Regulatory Agreement with HUD, which mandates monthly deposits to the reserve fund.
  • Recommended Follow-Up: Management should deposit $1,772 to the replacement reserve to ensure compliance and bring the account up to date.

Finding Text

2023-001 Replacement Reserve Deposits Federal Program Information: Funding agency: U.S. Department of Housing and Urban Development (HUD) Title: Supportive Housing for the Elderly CFDA number: 14.157 Award year and number: N/A Questioned Costs: None Condition: Prairie Estates did not make the required monthly deposit to the replacement reserve in the month of March 2023. Criteria: Pursuant to Paragraph 5 of the Regulatory Agreement, Prairie Estates shall establish and maintain a reserve fund and make required monthly deposits based on amounts approved by HUD. Effect: Prairie Estates is not in compliance with the terms of the Regulatory Agreement. Cause: Management did not make the required deposit for the month of March 2023 due to the lack of cash available to make the deposit. Auditor's Recommendation: Management should make the required replacement reserve deposit of $1,772 in order to bring the replacement reserve account to current.

Corrective Action Plan

Corrective Action Plan for Current Year Findings_x000B_2023-001 Replacement Reserve Deposits_x000B__x000B_Corrective Action Plan_x000B__x000B_The deposit was delayed due to cash flow issues from service coordinator funding not been allocated for the year, but the deposit for March 2023 was made on May 9, 2023. The parent company, West Central Missouri Community Action Agency, has since secured an operating line of credit, and in the event of a shortfall of operating cash for Prairie Estates in the future that would inhibit a monthly deposit being made to replacement reserves, a request for access to the line of credit will be made in order to stay in compliance with the regulatory agreement._x000B__x000B_Person(s) Responsible: Aaron Franklin, Karen Webber Timing for Implementation: Completed 05/09/2023

Categories

HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $199,194
14.191 Multifamily Housing Service Coordinators $38,975