Finding 496932 (2024-001)

FINDING No. 2024-001: Section 202 Supportive Housing for the Elderly, ALN 14.157 Finding Resolution Status: Unresolved. Information on Universe Population Size: Escrow accounts. Sample Size Information: Escrow accounts. Identification of Repeat Finding and Finding Reference Number: No. Criteria: As required by the regulatory agreement, the Project is required to pay, when due, all taxes, assessments and other charges. Statement of Condition: The Project is deficient in funding escrow deposits in the amount of $6,953. Cause: The Project did not properly fund the escrow account based on the current period insurance premiums and tax rates. Effect or Potential Effect: The escrow deposits are not sufficient to meet future obligations. Auditor Non-Compliance Code: Z – Other Reporting Views of Responsible Officials: The Project agrees with the finding and the auditor’s recommendations will be adopted. Recommendation: The Project should make sufficient deposits to the escrow account in a timely manner. Response Indicator: Agree. Completion Date: 3/31/2025 Response: Escrows were underfunded due primarily to a high increase in insurance rates. The project will fund the shortfall. Escrow balances will be reviewed on a regular basis to ensure adequate funding.