Finding Text
S3800-010 Finding Reference Number: 2022-002 S3800-011 Title and Assistance Listing Number of Federal Program: 14.157 Supportive Housing for the Elderly S3800-015 Type of Finding: Federal Program Finding (FP) S3800-016 Finding Resolution Status: IN PROCESS S3800-017 Information on Universe Population Size: N/A - Sampling not performed S3800-018 Sample Size Information: N/A - Sampling not performed S3800-019 Identification of Repeat Finding and Finding Reference Number: N/A S3800-020 Criteria: The HUD regulatory agreement requires monthly deposits to the replacement reserve account of $1,351. S3800-030 Statement of Condition: Management only made nine (9) of the twelve (12) monthly required reserve deposits, leaving the account underfunded by $4,053. S3800-032 Cause: Management has properly designed controls to ensure all monthly deposits are made; however, the control is not functioning as intended. S3800-033 Effect or Potential Effect: The replacement reserve account is underfunded by $4,053. S3800-035 Auditor Non-Compliance Code: N ? Reserve for Replacements S3800-040 Questioned Costs: $4,053 Details ? Questioned Costs by Property S3800-037 FHA/Contract Number: 127-EE017 S3800-038 Questioned Costs: $4,053 S3800-045 Reporting Views of Responsible Officials: Senior management has discussed the deficiency with the Project Accountant and Regional Manager. All future deposits to the replacement reserve will be made as required in the regulatory agreement. S3800-050 Context: See statement of condition. S3800-080 Recommendation: Management should institute a monitoring process to ensure all required monthly deposits to the replacement reserve are made. Such process could include initiating automatic recurring monthly transfers with the financial institution that maintains the replacement reserve account. S3800-090 Auditor?s Summary of the Auditee?s Comments on the Findings and Recommendations: Management agrees with the finding, and has taken corrective actions which include communication with the Project Accountant and Regional Manager. All future deposits the replacement reserve will be made as required in the regulatory agreement. S3800-0130 Response Indicator: Agree (A) S3800-0140 Completion Date: March 24, 2023 S3800-0150 Response: Management agrees with the finding, and has taken corrective actions which include communication with the Project Accountant and Regional Manager. All future deposits the replacement reserve will be made as required in the regulatory agreement.