Finding Text
Finding reference number: #2022-001 Assistance Listing title and number (federal award identification number and year): Supportive Housing for Persons with Disabilities, Assistance Listing No. 14.181 (101-HD029 and 2004) Auditor non-compliance code: N ? Reserve for Replacements Deposits Finding resolution status: In process Universe population size: The universe population size is not applicable to the finding. Sample size information: The sample size information is not applicable to the finding. Statistically valid sample: N/A Name of Federal agency: Department of Housing and Urban Development Pass-through entity: N/A Questioned costs: $961 Statement of condition #2022-001: The Corporation did not make $579 of the total required reserve for replacement deposits during the year ended March 31, 2022. Additionally, the Corporation did not make a required reserve for replacements deposit of $382 to correct the underfunded amount for the year ended March 31, 2021. Criteria: Section 26(c) of the PRAC requires monthly deposits into a separate reserve for replacements account. Effect or potential effect: The Corporation is not in compliance with the terms of the PRAC. At March 31, 2022, the reserve for replacements account is underfunded by $961. Cause: Management did not make the required monthly reserve for replacements deposits. Recommendation: Management should make all required deposits to the reserve for replacements fund. Management should transfer $961 from the operating account to the reserve for replacements fund. Completion date: March 31, 2023 Management response: Agreed. Management concurs with the finding and the auditor?s recommendation. The Corporation will make an additional deposit of $961 to the reserve for replacements fund.