Finding Text
50000 – Federal Compliance Federal Agency: U.S. Department of Housing and Urban Development Pass‐through Entity: N/A (Direct Award) Federal Program: Supportive Housing for the Elderly ‐ Section 202 & Section 8 Housing Assistance Payments Program ALN: 14.157 & 14.195 Compliance Requirement: Special Tests and Provisions Type of Finding: Significant Deficiency and Non‐Compliance Criteria or Specific Requirements In accordance with 24 CFR Section 891.405(b) and 24 CFR Section 880.602, the management is responsible for making monthly required deposits into the replacement reserve account in an amount determined by HUD. Condition We noted one instance during our testing where management did not make the required monthly deposit into the replacement reserve account on a timely manner. Monthly deposit for November 2022 through January 2023 were made in February 2023. Questioned Costs There were no questioned costs associated with the condition identified Context The condition was identified as a result of reviewing the Corporation’s financial reports, monthly bank account statement, and supporting documents supporting the amounts reported. Effect The Corporation has not complied with requirement identified in 24 CFR Section 891.405(b) and 24 CFR Section 880.602. Cause Management’s policies were not followed with respect to making the HUD required monthly deposit into the replacement reserve account on time. Repeat Finding No. Recommendation Management should implement control and procedures to ensure the required monthly deposits are made in a timely manner. Corrective Action Plan and Views of Responsible Officials The Corporation will ensure that all monthly deposits to the replacement reserve are made in a timely manner.