Finding Text
Over the Rainbow Association and Subsidiaries SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED DECEMBER 31, 2022 DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT For the Rockford Supportive Housing Facility Questioned Costs FINDING 2022-003: SECTION 811, ASSISTANCE LISITNG NUMBER 14.181 Condition: The Project took a HUD subsidy loan from replacement reserves of $15,000 and failed to repay the loan based upon the terms of the agreement with HUD. Criteria: The Project should have repaid the required amount to replacement reserves. Effect: The replacement reserve balance was underfunded by $15,000 at December 31, 2022. Context: All elements of the replacement reserve account were tested at December 31, 2022. No sample was selected. Questioned Costs $15,000 Cause: The Project neglected to repay the HUD subsidy loan based upon the terms of the agreement. Recommendation: The Project should repay the HUD subsidy loan as soon as funds are available. Views of Responsible Officials and Planned Corrective Actions: The Project agrees with the finding. A $15,000 transfer will be made once funds are available. Management will be reminded to carefully review HUD correspondence to make sure HUD subsidy loan terms are being followed. Total - Department of Housing and Urban Development $15,000 Non-compliance code - N