Finding 374649 (2023-002)

Significant Deficiency
Requirement
C
Questioned Costs
-
Year
2023
Accepted
2024-03-09
Audit: 294325
Organization: Statewide Bay Landing Ii, Inc. (RI)
Auditor: D'ambra CPA

AI Summary

  • Core Issue: No deposits were made to the replacement reserve account for 8 months, leading to an underfunding of $12,968.
  • Impacted Requirements: HUD regulations require monthly deposits to the replacement reserve, which were not met due to cash flow problems.
  • Recommended Follow-Up: Management should ensure timely future deposits and address the funding shortfall.

Finding Text

Federal program - Section 202: Criteria - HUD regulations specify the amount required to be deposited on a monthly basis to the replacement reserve account.; Condition - no deposits were made for 8 months and the total deposits were underfunded by $12,968 including $3,242 from 2022; Cause - the late deposits and funding shortfall were due to the property experiencing a cash flow problem and therefore unable to make the required deposits; Recommendation - the management agent should make all future deposits on a timely basis and arrange to fund the shortfall. Response: Management will make every effort to fund future deposits on a timely basis and will attempt to find resources to fund the shortfall.

Corrective Action Plan

the property makes every effort to deposit reserves on a timely basis and due to cash flow constraints, has been unable too. The property will continue to whittle away at the shortfall and make every effort to deposit the required funds on a monthly basis.

Categories

HUD Housing Programs

Other Findings in this Audit

  • 374648 2023-001
    Significant Deficiency
  • 951090 2023-001
    Significant Deficiency
  • 951091 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $106,298