FAC Explorer

Finding 395060 (2023-001)

-
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-04-30
Audit: 304991
Organization: Union Congregational Church Homes, Phase Ii, INC (MA)
Auditor: Kahn Litwin Renza & CO LTD

AI Summary

  • Core Issue: The Organization failed to make required monthly deposits to the replacement reserve account, totaling $6,428.
  • Impacted Requirements: This non-compliance violates HUD program regulations regarding funding for the Supportive Housing for the Elderly program.
  • Recommended Follow-Up: Ensure timely deposits moving forward and confirm that the recent deposit of $6,428 has resolved the underfunding issue.

Finding Text

Findings and Questioned Costs - Major Federal Award Program Audit Finding No. 2023-001 Major Federal Program Supportive Housing for the Elderly (Section 202), CFDA 14.135 Criteria The regulations under which the Organization operates require the Organization to make monthly deposits to the replacement reserve account pursuant to the Regulatory Agreement with HUD. Statement of Condition During the year ended December 31, 2023, the Organization did not make the required monthly deposits for September 2023 to December 2023 to the replacement reserve account, totaling $6,428. Cause Personnel changes at the Organization resulted in the missed deposits to the replacement reserve account. Effect or Potential Effect Failure to make these monthly deposits resulted in an underfunding of the replacement reserve account as of December 31, 2023, which is a violation of the applicable HUD program requirements. Questioned Costs $6,428 Recommendations Management should deposit $6,428 to the replacement reserve account. Reporting Views of Responsible Officials Management concurs with the finding and a deposit of $6,428 was made to the replacement reserve account on February 21, 2024 to correct the underfunding.

Corrective Action Plan

CORRECTIVE ACTION PLAN (UNAUDITED) Name of Auditee: Union Congregational Church Homes, Phase II, Inc. HUD Project No.: 023-EH217 Audit Firm: Kahn, Litwin, Renza & Co., Ltd. Period Covered by the Audit: Year ended December 31, 2023 Corrective Action Plan Prepared By: Name: Ronald Gates Position: Executive Director Telephone No.: (781) 335-2667 A. Current Findings on the Schedule of Findings and Questioned Costs Finding 2023-001: Replacement Reserve Deposits a. Comments on Finding and Recommendations: Management concurs with the finding and agrees with the recommendation. b. Actions Taken or Planned: Management concurs with the finding and a deposit of $6,428 was made to the replacement reserve account on February 21, 2024 to correct the underfunding. Supporting documentation for the deposit to the replacement reserve account will be furnished to HUD upon request. Name of Responsible Person: Ronald Gates, Executive Director Projected Implementation Date: February 21, 2024

Categories

Questioned Costs HUD Housing Programs Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $1.01M
14.856 Lower Income Housing Assistance Program_section 8 Moderate Rehabilitation $601,018