Finding 504004 (2024-002)

-
Requirement
C
Questioned Costs
-
Year
2024
Accepted
2024-10-29
Audit: 326365
Organization: Spring Valley Housing, Inc. (TN)

AI Summary

  • Core Issue: The project did not make required monthly deposits of $350 into the Replacement Reserve account.
  • Impacted Requirements: Compliance with HUD's Replacement Reserve deposit requirements was not maintained.
  • Recommended Follow-Up: Establish procedures to ensure future deposits are made and correct the underfunded amount of $2,450.

Finding Text

S2700-005 Finding Reference Number 2024-02 S2700-006 Finding Status Ongoing S2700-007 Population Size N/A S2700-008 Sample Size N/A S2700-009 Noncompliance Information Project was required to fund the Replacement Reserve with deposits totaling $350 per month. S2700-010 Statement of Condition The project failed to make monthly deposits into the Replacement Reserve account. S2700-020 Criteria Project is required to comply with the Replacement Reserve deposit dequirements from HUD. S2700-030 Effect Replacement Reserve was underfunded. S2700-040 Cause Controls were not in place to maintain compliance with Replacement Reserve funding requirements. S2700-050 Recommendation Implement procedures to prevent the Replacement Reserve from being underfunded. Make a deposit for underfunded Replacement Reserve deposits and to correct the amount deposited monthly for future deposits. S2700-055 Auditor Non-Compliance Code N - Reserve for Replacement Deposits S2700-065 Amount of Questioned Costs $2,450 S2700-100 Summary of Auditee's Comments Management concurs with the finding and recommendation S2700-070 Finding Response Concur S2700-075 Recommendation Response Agree S2700-080 Completion Date Ongoing S2700-090 Actions Taken or Planned on the Finding Management agrees with the finding and will implement controls to prevent the Replacement Reserve from being underfunded in the future.

Corrective Action Plan

Management agrees with the finding and will implement controls to prevent the Replacement Reserve from being underfunded in the future.

Categories

HUD Housing Programs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.181 Supportive Housing for Persons with Disabilities $84,212