Finding 1337 (2023-001)

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.