Finding Text
2022-001 Reserve for Replacement Information on the federal program ? U.S. Department of Housing and Urban Development, Federal Assistance Listing Number 14.157, Supportive Housing for the Elderly Criteria or specific requirement ? Special Tests and Provisions ?Replacement Reserves ? Per 24 CFR 891.405(b), the Housing Company is required to make timely monthly deposits into the reserve for replacement account. Condition ? In 2022, the Housing Company did not deposit monthly required deposits in a timely manner. Questioned Costs ? None. Context ? The Housing Company was delinquent in making 10 of their 12 deposits. Tested 100% of deposits. Effect ? The Housing Company was delinquent in making 10 of their 12 deposits. Cause ?The Housing Company did not have the available cash to fund the reserve. Identification as a Repeat Finding, if applicable ? This condition did exist in the prior year (2021-001). Recommendation ? We recommend that the Housing Company set up automated deposits to ensure timely deposits are made. View of Responsible Officials and Planned Corrective Action ? Please see the attached corrective action plan as submitted by management.