FAC Explorer

Finding 398235 (2023-001)

- Repeat Finding
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-05-22
Audit: 306902
Organization: Farrell-Bell Senior Housing Apartments, Inc. 073-Ee119 (IN)
Auditor: Agresta Storms and O'Leary

AI Summary

  • Unauthorized Withdrawal: The Corporation took $35,000 from the replacement reserve account without HUD's approval.
  • Compliance Issue: This action has left the reserve account underfunded, violating regulatory requirements.
  • Next Steps: The Corporation plans to reimburse the account when funds are available, as acknowledged by management.

Finding Text

Finding No. 2023-001 Statement of Condition: The Corporation made an unauthorized withdrawal from the replacement reserve account in a prior year. Criteria: The Corporation is required to receive authorization from HUD prior to withdrawing funds from the reserve account. Questions Costs: $35,000 Effect: The replacement reserve account is underfunded causing non-compliance with the regulatory agreement. Cause: The Corporation withdrew cash from the reserve account to pay for operating expenses due to delays in PRAC being renewed resulting in the account being underfunded. Recommendation: The Corporation should reimburse the replacement reserve account when funds are available. Management Response: Management agrees with the finding and will reimburse the replacement reserve account when funds are available.

Corrective Action Plan

Corrective Action Plan Prepared by: Name: Dave Cooper Position: President, Community Reinvestment Foundation, Inc. Telephone Number: 317-554-2100 A. Current Findings on the Schedule of Findings, Questioned Costs, and Recommendations Finding No. 2023-001 A. Comments on the Finding and Each Recommendation: Management agrees with the finding. Management is aware withdrawals from reserve must have HUD approval and account must be fully funded. B. Action Taken or Planned on the Finding: Management will deposit the funds into the replacement reserve when available.

Categories

Questioned Costs HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $238,537