Finding Text
Finding Type - Immaterial noncompliance with major program requirements Title and Assistance Listing Number of Federal Program - Supportive Housing for the Elderly - Project Rental Assistance Contract and Capital Advance (ALN #14.157) Finding Resolution Status - Resolved Information on Universe and Population Size - N/A Sample Size Information - N/A Criteria - The Organization should have made 12 monthly deposits of $1,500 into the reserve for replacement account, as required by the Regulatory Agreement. Statement of Condition - The Organization failed to make the required reserve for replacement deposits in the current fiscal year. Cause - The Organization failed to monitor the cash requirements of the reserve for replacement account, as specified by the Regulatory Agreement. Effect or Potential Effect - The replacement reserve account was underfunded in the current fiscal year by $1,500. Auditor Noncompliance Code - N - Reserve for replacements deposits Reporting Views of Responsible Officials - Management was aware of the requirement to fund the reserve for replacement account and agrees with the finding. The underfunded amount of $1,500 was deposited to the reserve for replacement account on July 28, 2022. Recommendation - All required deposits should be made in accordance with the Regulatory Agreement. Response Indicator - Agree Completion Date - July 28, 2022 Response - Management acknowledges noncompliance in the current fiscal year and has taken measures to improve internal controls over compliance. Management will obtain HUD approval for the $1,500 repayment during the fiscal year ending June 30, 2023.