Finding 501256 (2022-004)

S3800 010 Finding Reference Number: 2022 004 S3800 011 Title and Assistance Listing Number of Federal Program: 14.195 Section 8 Housing Assistance Payments Program S3800 015 Type of Finding: Federal Award Finding S3800 016 Finding Resolution Status: In process S3800 017 Information on Universe and Population Size: Replacement reserve deposits S3800 018 Sample Size Information: There was no sampling related to this finding. S3800 019 Identification of Repeat Finding and Finding Reference Number: N/A S3800 020 Criteria: In accordance with Section 8 contracts for each property, HUD requires monthly deposits to the replacement reserves. S3800 030 Statement of Condition: During 2022, management did not make any deposits to the replacement reserves. S3800 032 Cause: Management made a decision to not make the deposits. S3800 033 Effect or Potential Effect and Perspective: Deposits to the replacement reserves are delinquent in the amount of $294,311 S3800 035 Auditor Non Compliance Code: N Reserve for replacements deposits S3800 040 Questioned Costs: No questioned costs. S3800 045 Reporting Views of Responsible Officials: Management and ownership agreed with the finding and has implemented a corrective action plan. S3800 012 Please identify the property(s) and associated questioned costs this finding applies to: First AME Housing Association S3800 037 FHA/Contract Number: WA19M000137, WA19L000005, WA19L000004 WA19M000135 and WA19M000127 S3800 050 Context: See statement of condition. S3800 080 Recommendation: Management should implement procedures to ensure that deposits occur monthly. Management should deposit the delinquent funds as soon as possible. S3800 090 Auditor's Summary of Auditee's Comments on the Findings and Recommendations: Management and ownership agrees with the auditor. S3800 130 Response Indicator: Agree S3800 140 Completion Date: 3/31/2024 S3800 150 Response: Ownership agreed with the finding and has implemented a corrective action plan.