FAC Explorer

Finding 38573 (2022-001)

-
Requirement
C
Questioned Costs
$1
Year
2022
Accepted
2022-11-21
Audit: 36265
Organization: Kalona Valley Apartments, Inc. (IA)
Auditor: Tdt CPAS and Advisors PC

AI Summary

  • Core Issue: Monthly transfers of $2,717 to the replacement reserve fund were not made, totaling $32,600 for the year.
  • Impacted Requirements: This failure to transfer funds violates the Regulatory Agreement with USDA.
  • Recommended Follow-Up: The Organization should prioritize making the overdue transfers of $4,997 to the reserve as soon as possible.

Finding Text

Condition: Required monthly transfers totaling $32,600 to the replacement reserve fund as required by the Regulatory Agreement with USDA were not made during the year due to lack of funds available in the operating account. Criteria: The Regulatory Agreement with USDA requires $2,717 to be transferred to the replacement reserve account monthly from the operating account. Effect: The Project was not in compliance with the Regulatory Agreement with USDA. Recommendation: We recommend that the Organization make the delinquent transfers to the replacement reserve account as soon as funds are available. Response: The Organization will make the required transfers of $4,997 to the replacement reserve account as soon as funds are available. Conclusion: Response accepted. Questioned Costs: $-

Corrective Action Plan

Finding 2022-001 Recommendation: We recommend that the Organization make the delinquent transfers to the replacement reserve account as soon as funds are available. Response: The Organization will make the required transfers of $4,997 to the replacement reserve account as soon as funds are available. Anticipated Completion Date: December 31, 2022.

Categories

Questioned Costs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.415 Rural Rental Housing Loans $802,510
10.427 Rural Rental Assistance Payments $77,155
10.415 Rural Rental Housing Loans - Interest Subsidy $56,953