Finding 3380 (2023-001)

- Repeat Finding
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2023-12-05

AI Summary

  • Issue: O’Brien Road Senior Apartments missed a required monthly deposit of $1,400 into the reserve fund for replacements.
  • Impact: This underfunding means the apartments are not compliant with their regulatory agreement.
  • Follow-up: Ensure the $1,400 deposit is made when cash flow allows; management has acknowledged this and made the payment in April 2023.

Finding Text

Finding 2023-001: Supportive Housing for the Elderly (Section 202), Federal Assistance Listing Number 14.157 Criteria: Per the regulatory agreement, O’Brien Road Senior Apartments is required to make monthly deposits of $1,400 into a reserve fund for replacements. Condition: The reserve for replacements account was underfunded by $1,400 (one month’s payment) as of March 31, 2023. Context: We reviewed the deposits into the reserve for replacements during the year. Cause: O’Brien Road Senior Apartments lacked adequate cash flow in 2023 to make all required deposits as the HUD tenant assistance payments were delayed with the renewal of the Project Rental Assistance Contract. Effect: O’Brien Road Senior Apartments was not in compliance with the regulatory agreement. Recommendation: We recommend that O’Brien Road Senior Apartments make the remaining $1,400 deposit into the reserve for replacements when cash flow is sufficient. Views of management and planned corrective action: O’Brien Road Senior Apartments agrees with the finding and the required payment was made in April 2023.

Corrective Action Plan

U.S. Department of Housing and Urban Development Loretto O’Brien Road Housing Development Fund Company, Inc. (O’Brien Road Senior Apartments), HUD Project No. 014-EE262/NY06-S061-007 respectfully submits the following corrective action plan for the year ended March 31, 2023. Name and address of independent public accounting firm: Bonadio & Co., LLP 432 North Franklin Street #60 Syracuse, New York 13204 Audit period: April 1, 2022 – March 31, 2023 The findings from the 2023 schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS – FINANCIAL STATEMENT AUDIT None FINDINGS – FEDERAL AWARD PROGRAM AUDIT Finding 2023-001: Supportive Housing for the Elderly (Section 202), Federal Assistance Listing Number 14.157 Recommendation: Our auditors recommended that we make the remaining $1,400 deposit into the reserve for replacements when cash flow was sufficient. Action Taken: O’Brien Road Senior Apartments made the required payment in April 2023. Name of Contact Person Responsible for Corrective Action: Kyle Lyskawa, CFO, (315) 424-1821. Completion Date: April 2023

Categories

HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly (section 202) $3.87M