Finding Text
Part 3: Findings ? Federal Award and Questioned Costs Finding reference number: 2022-02 - Special Test and Provisions - Replacement Reserve Federal agency: US Department of Housing and Urban Development CFDA number: 14.181 Supportive Housing for Persons with Disabilities Type of Finding: Compliance - Reserve for Replacements Deposits Finding Resolution: Resolved status Criteria: An amount as required by HUD will be deposited monthly in the reserve fund (Regulatory Agreement, item 5 (a)). The current HUD-9250 requires that the entity makes monthly payments of $400 into a reserve fund for replacements held in a separate, federally insured account. Condition: The required $400 monthly deposit to the replacement reserve account was not made for six months during the year ended June 30, 2022. Cause: The previous accountant who handled these deposits left CLA in Dec 2021. CLA hired a replacement who has been transitioning into the accounting role and responsibilities. Context and effect: The Entity is required to make a monthly deposit to the replacement reserve account. Questioned costs: None identified. Identification as Repeat Finding, if Applicable: This is not a repeat finding. Recommendation: The Entity must ensure that it follows all regulatory agreement requirements. Views of Responsible Officials, Summary of Auditees? Findings and Recommendations & Response: Management agrees with the auditor?s findings and recommendations. Completion Date: September 19, 2022