Finding Text
2023-001 Federal Agency: U.S. Department of Housing and Urban Development Federal Program: CFDA #14.157 Supportive Housing for the Elderly Type of Finding: Noncompliance/significant deficiency in internal control over compliance Criteria The Corporation, in accordance with the Regulatory Agreement, is required to maintain a reserve for replacements. The required minimum monthly deposit into this account is $2,439 through November 2023 and $2,562 for December 2023. Condition For the year ended December 31, 2023, a total of $29,399 was to be deposited into the replacement reserve account. However, no amounts were deposited. Additionally, there was replacement reserve amounts of $23,353 from fiscal 2022 and 2021 which have not been deposited to date. Questioned Costs None Cause Due to turnover in the accounting department staff, the required monthly deposits were not made in a timely fashion. Effect The Corporation did not make the deposits into the replacement reserve account as required by the Regulatory Agreement. Recommendation The Corporation should have procedures in place to ensure all required monthly deposits are made to the reserve for replacements. Views of Responsible Officials and Planned Corrective Action See accompanying Corrective Action Plan.