Finding Text
Finding: 2023-001
CFDA Number: 14.157
Program Name: Supportive Housing for the Elderly (Section 202)
Federal Agency Department of Housing and Urban Development
Federal Award Type: Significant Deficiency and Noncompliance
Compliance Requirement: Special Tests
Questioned Costs: N/A
Criteria
The Project is required to fund $826 monthly into the replacement reserve account.
Condition
The Project did not fund the required $9,912, into the replacement reserve.
Cause
The Project failed to fund the entire yearly requirement of $9,912 into the replacement reserve account.
Effect of Condition
The Project is out of compliance with HUD regulations.
Recommendation
We recommend that policies and procedures be reviewed and updated to ensure that monthly deposits
to the replacement reserve are made. We also recommend that the Project deposit an additional
$9,912 into the replacement reserve account.
Management's Response
Management agrees with the recommendation and will work to update policies and procedures to
ensure all monthly deposits to the replacement reserve are made. Additionally, management will fund
$9,912 of additional reserve deposits to make the account whole.