Finding Text
Assistance Listing (Federal award identification number and year): Supportive Housing for
Persons with Disabilities, Assistance Listing 14.181 (073-HH001 and 1990)
Auditor non-compliance code: N-Reserve for Replacement Deposits
Finding resolution status: Outstanding
Universe population size: 12 months of deposits to the reserve for replacements
Sample size information: 12 months of deposits to the reserve for replacements
Statistically valid sample: Yes
Name of Federal agency: U.S. Department of Housing and Urban Development
Pass-through entity: N/A
Questioned costs: $2,236
Statement of condition 2023-001: The Corporation did not make all of the reserve for replacement
deposits as required by HUD for the year ended June 30, 2023.
Criteria: Pursuant to the Regulatory Agreement, the Community is required to make monthly deposits
to the reserve for replacements fund as required by HUD.
Effect: The Corporation is not in compliance with the terms of Regulatory Agreement and the reserve
for replacements fund is underfunded by $2,236 at June 30, 2023.
Cause: Due to HUD delays in approving PRAC renewals, management did not have cash available to
make three monthly deposits for the year ended June 30, 2023.
Recommendation: Management should transfer $2,236 from the operating cash account to the
reserve for replacement fund.
Management's response: Agree. Management will transfer $2,236 from the operating cash account
to the reserve for replacement fund as soon as possible.