FAC Explorer

Finding 29169 (2022-001)

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Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-05-30
Audit: 28946
Organization: Farrell-Bell Senior Housing Apartments, Inc. 073-Ee119 (IN)
Auditor: Agresta Storms & O'Leary PC

AI Summary

  • Core Issue: The Corporation missed two monthly deposits into the replacement reserve account, leading to an underfunding of $2,728.
  • Impacted Requirements: Monthly deposits to the replacement reserve account are mandatory as per the regulatory agreement.
  • Recommended Follow-Up: Ensure timely deposits into the reserve account moving forward, especially when cash flow improves.

Finding Text

Finding No. 2022-001 Statement of Condition: The Corporation failed to make all 12 monthly deposits into the replacement reserve account. The account is underfunded by $2,728 at December 31, 2022. Criteria: The Corporation is required to make monthly deposits to the replacement reserve account in accordance with the regulatory agreement. Questioned Costs: Not applicable Effect: The Corporation is not in compliance with the regulatory agreement. Cause: The Corporation failed to make two months of required monthly deposits to the replacement reserve account due to cash flow issues. Recommendation: The Corporation should deposit the required funds into the replacement reserve account when funds are available. Management Response: Management agrees with the finding. Subsequent to year end, funds were transferred to the reserve account to cover the delinquent deposits.

Corrective Action Plan

Corrective Action Plan Prepared by: Name: Dave Cooper Position: President, Community Reinvestment Foundation, Inc. Telephone Number: 317-554-2100 A. Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Finding No. 2022-001 A. Comments on the Finding and Each Recommendation: Management agrees with the finding. Deposits were not made due to cash flow issues caused by the delayed PRAC renewal. B. Action Taken or Planned on the Finding: Management deposited the funds into the reserve subsequent to year end.

Categories

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Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $237,671