Finding Text
2024-001 Replacement Reserve Deposits
Federal Program Information:
Funding agency: U.S. Department of Housing and Urban Development (HUD)
Title: Supportive Housing for the Elderly
AL number: 14.157
Award year and number: N/A
Questioned Costs: None
Condition: Prairie Estates did not make the required monthly deposit to the replacement reserve
for several months of it's fiscal year. A large catch-up contribution was made in March 2024 to
compensate for the missed contributions.
Criteria: Pursuant to Paragraph 5 of the Regulatory Agreement, Prairie Estates shall establish and
maintain a reserve fund and make required monthly deposits based on amounts approved by
HUD.
Effect: Prairie Estates is not in compliance with the terms of the Regulatory Agreement.
Cause: Management did not make the required deposits in a timely manner due to the lack of
cash available to make the deposits.
Auditor's Recommendation: Management should seek to implement operational changes to
allow for timely deposits of reserve funds.
View of Responsible Officials: Management agrees with the assessment and has prepared a
corrective action plan.