Finding 46814 (2022-001)

Program: U.S. Department of Housing and Urban Development Supportive Housing for Persons with Disabilities (Section 811) ? Criteria or specific requirement: In accordance with the HUD regulatory agreement, the Organization shall make monthly deposits into its replacement reserve account. ? Condition: The Organization failed to make the required deposits into the replacement reserve account for two months. ? Cause: The monthly transfer from the operating account to the reserve for replacement was reversed incorrectly. This was discovered and corrected as a result of the fiscal audit. ? Recommendation: We recommend that a process be put in place to ensure all necessary deposits are made timely. ? Views of responsible officials (and planning corrective actions): Management agrees with the recommendations provided. See Corrective Action Plan.