Finding 498371 (2023-001)

- Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2024-09-26
Audit: 321103
Organization: Russo Street Apartments, Inc. (RI)
Auditor: D'ambra CPA

AI Summary

  • Answer: An extra deposit of $1,200 was made to the replacement reserve account, leading to an excess of $683.
  • Trend: This issue arose due to management oversight in monitoring deposits.
  • List: Management plans to adjust next year's deposits to account for the excess amount.

Finding Text

Federal program - Section 811: Criteria - HUD regulations specify the amount required to be deposited on a monthly basis to the replacement reserve account.; Condition - an additional deposit was made in error totaling $1,200 resulting in an excess deposit totaling $683; Cause - management oversight; Recommendation - management should make every effort to deposit the monthly required amount and reduce the next year deposits by the excess amount deposited. Response: Management will reduce next year deposits by the excess amount.

Corrective Action Plan

Conduct a detailed review of the replacement reserve account to confirm the total excess deposits of $683. Identify the transactions that led to these excess deposits. Adjust the accounting records to reflect the accurate balance in the replacement reserve account. Document all adjustments for transparency and future reference. Review the funding guidelines for the replacement reserve to prevent future excess deposits. Ensure that all stakeholders understand the criteria for deposits into the reserve.

Categories

HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $113,808