FAC Explorer

Finding 497534 (2023-004)

Significant Deficiency Repeat Finding
Requirement
P
Questioned Costs
-
Year
2023
Accepted
2024-09-20
Audit: 320273
Organization: Bethel Towers (LA)
Auditor: Wharton CPA LLC

AI Summary

  • Core Issue: The Project did not repay a $21,073 loan from the reserve for replacement as required by HUD-9250.
  • Impacted Requirements: Non-compliance with the repayment terms outlined in the HUD-9250 approved on April 11, 2022.
  • Recommended Follow-up: Ensure the Project adheres to HUD 9250 Funds Authorizations for future compliance.

Finding Text

2023-4 Unpaid Loan from Reserve for Replacement Condition: The Project failed to comply with the terms of HUD approved 9250. Criteria: According to HUD-9250 approved on April 11, 2022, a $21,073 loan from the reserve for replacement account was to be repaid upon approval of the budget and the contract. Both the budget and contract were approved for the year however, repayment was not made. Cause: The cause is undeterminable. Effect: The Project did not comply with the repayment terms of HUD 9250. Recommendation: I recommend the Project comply with HUD 9250 Funds Authorizations.

Corrective Action Plan

Management agrees that HUD approved a 9250 on April 11, 2022, in the amount of $21,073 for a loan from the Reserve for Replacement Account which has not been repaid. Bethel Towers continues to experience increased expenses, specifically with utilities. The property is also experiencing vacancy and receivable issues causing the property to not receive its monthly gross rent potential. The property is aware there is an outstanding loan owed to the Reserve for Replacement Account and intends to repay that loan as soon as the property is financially stable and able to repay it.

Categories

HUD Housing Programs Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 497531 2023-001
    Significant Deficiency
  • 497532 2023-002
    Significant Deficiency Repeat
  • 497533 2023-003
    Significant Deficiency
  • 1073973 2023-001
    Significant Deficiency
  • 1073974 2023-002
    Significant Deficiency Repeat
  • 1073975 2023-003
    Significant Deficiency
  • 1073976 2023-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $3.28M
14.195 Section 8 Housing Assistance Payments Program $225,708