Finding Text
Finding 2023-003 Title and AL Number of Federal Program: Supportive Housing for the Elderly, AL 14.157 Type of finding: Compliance Resolution status: In Progress Population size: N/A Sample size: N/A Repeat finding: No Criteria: All of the required deposits to the replacement reserve were not made during the year. Condition: The required deposits to the replacement reserve for the year were short by $1,321. Cause: Prior management company oversight. Effect: There was a shortfall in the monthly deposits to the replacement reserve as required by HUD. Noncompliance code: N. Reserve for Replacement Deposits Questioned cost: None Reporting views of officials: Management agrees with the finding. Context: This was noted while performing audit procedures on the replacement reserve. Recommendation: All deposits required to be made to the replacement reserve should be made on a timely basis. Auditors' summary of auditee's comments: They are in agreement and the new management company will make a deposit for the shortfall. Completion date: 12/31/24 Response: The new management company plans to make all deposits in a timely manner. Corrective Action: In progress