FAC Explorer

Finding 502897 (2024-001)

- Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2024-10-15
Audit: 324838
Organization: Rose Arc Housing, Inc. (RI)
Auditor: Otrando Porcaro & Associates LTD

AI Summary

  • Answer: The project did not meet HUD's requirement for monthly replacement reserve deposits.
  • Trend: Only $2,388 was deposited instead of the expected $2,865, indicating a consistent shortfall.
  • List: Follow up by ensuring future deposits meet HUD requirements and address the shortfall to avoid further violations.

Finding Text

Replacement reserve deposits should be made monthly in an account determined by HUD. During the year ended June 30, 2024, insufficient deposits were made to the replacement reserve. The project failed to make the required deposits to the replacement reserve. The project is in violation of HUD replacement reserve procedures. Deposits totaling $2,865 were expected in the period. Deposits totaling only $2,388 were made during the period.

Corrective Action Plan

The Corporation acknowledges that sufficient deposits were not made and agrees with the recommendation. The Corporation plans to make the required reserve deposits for the year ended June 30, 2025.

Categories

HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $775,700