Finding 485697 (2023-001)

FINDING No. 2023-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: All replacement reserve deposits for the year ended December 31, 2023. Sample Size Information: Required replacement deposits for the year ended December 31, 2023. Identification of Repeat Finding and Finding Reference Number: No. Criteria: In accordance with HUD, the required monthly deposit must be made to the Project's reserve for replacement account. Statement of Condition: The Project overfunded the account by $9,600. Cause: The Project overfunded the replacement reserve account for two months after receiving approval for a suspension of deposits. Effect or Potential Effect: Overfunded reserve for replacement account. Auditor Non-Compliance Code: N – Reserve for Replacements deposits. Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: The Project should implement procedures to ensure that the correct amount is deposited into the replacement reserve account each month and request a HUD Form 9250 to withdraw the excess funding. Response Indicator: Agree. Completion Date: 12/31/2024. Response: The verification of the correct funding amounts is now confirmed against the approved 9250 on a monthly basis and is a step that has been added on the month-end close checklist.