FAC Explorer

Finding 37088 (2022-001)

-
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 30431
Organization: St. Clements Nonprofit Hdc St. Clements Manor 044-Eh210 (MI)
Auditor: Boisvenu & Company PC

AI Summary

  • Core Issue: The reserve for replacements fund is below the required $200,000 as of June 30, 2022.
  • Impacted Requirements: Compliance with HUD guidelines, specifically Form HUD-9250, which mandates maintaining a minimum balance.
  • Recommended Follow-Up: Management should seek an updated waiver from HUD regarding the $200,000 minimum balance requirement.

Finding Text

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Supportive Housing for the Elderly (Section 202), CFDA 14.157 2022-001 Compliance Requirement: Special Tests and Provisions ? Reserve for Replacements Fund Condition: The reserve for replacements fund account is less than $200,000 as of June 30, 2022. Criteria: The U.S. Department of Housing and Urban Development Form HUD-9250 dated February 26, 2021 for the reserve for replacements fund states that a suspension of deposits to the reserve is allowed as long as a balance of $200,000 is maintained. Cause/Effect: The Project?s management did not maintain the required $200,000 balance in the reserve for replacement fund account during fiscal year end June 30, 2022. Questioned Cost: Undetermined Recommendation: Every effort should be made to comply with the reserve for replacements fund minimum balance requirement. Management should obtain from HUD an updated Form HUD-9250 waiving the $200,000 required minimum deposit. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and the recommended procedures. Every effort will be made to have the reserve for replacements fund minimum balance requirement modified and to comply with the modified balance.

Corrective Action Plan

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT St. Clement?s NonProfit Housing Development Corporation, St. Clement?s Manor respectfully submits the following corrective action plan for the year ended June 30, 2022. Name and address of independent public accounting firm: Boisvenu & Company, P.C., 30600 Telegraph Road, Suite 1300, Bingham Farms, Michigan 48025 Audit period: July 1, 2021 through June 30, 2022 The finding from the June 30, 2022 schedule of findings and questioned costs is discussed below. The finding is numbered consistently with the number assigned in the schedule. 2022-001 Compliance Requirement: Special Tests and Provisions ? Reserve for Replacements Fund Supportive Housing for the Elderly (Section 202), CFDA 14.157 Recommendation: Every effort should be made to comply with the reserve for replacements fund minimum balance requirement. Management should obtain from HUD an updated Form HUD-9250 waiving the $200,000 required minimum deposit. Planned Corrective Actions: Every effort will be made to have the reserve for replacements fund minimum balance requirement modified and to comply with the modified balance. If the U.S. Department of Housing and Urban Development has questions regarding this plan, please call (248) 865-0066.

Categories

Special Tests & Provisions Procurement, Suspension & Debarment HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $1.38M
14.195 Section 8 Housing Assistance Payments Program $333,732
14.191 Multifamily Housing Service Coordinators $51,901