Finding 517509 (2023-001)

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Requirement
P
Questioned Costs
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Year
2023
Accepted
2025-01-02

AI Summary

  • Issue: The Project missed the December deposit to the replacement reserve account, leading to underfunding.
  • Requirements Impacted: Monthly deposits to the replacement reserve account as mandated by HUD were not met.
  • Follow-Up: Ensure all missed deposits are caught up and approved loans are returned once the missing vouchers are processed.

Finding Text

Finding number : 2023-001 ALN: 14.157 - Supportive Housing for the Elderly Grantor: HUD Questioned Costs: $0 Criteria: Section 202 Projects are generally required to make monthly deposits to a replacement reserve account in an amount determined periodically by HUD. Description of Condition: The Project failed to make the December deposit to the replacement reserve and did not catch up the deposits when the December voucher was deposited in early January. Cause of Condition: The Project did not get is rental subsidy request which included three months of a retroactive rent increase leaving it in a severe cash shortage. Effect of Condition: The replacement reserve account is under funded by the $2,101 monthly deposit for December. Recommendations: Care should be taken to catchup any missing deposits and return approved loans when the missing vouchers are eventually deposited. Managements Views and Corrective Action Plan: Management's views and corrective action plan is included at the end of this report after the summary schedule of prior audit findings and status.

Corrective Action Plan

Corrective Action Plan September 27, 2024 U.S. Department of Housing & Urban Development 20 Church Street, 10th floor Hartford, CT 06103 St Luke's Senior Housing Inc. respectfully submits the following corrective action plan for St Luke's Senior Housing (Project #Ol 7-EE086) year ended December 31, 2023, which was audited by: Bailey, Moore, Glazer, Schaefer & Proto LLP 16 Lunar Drive Woodbridge, CT 06525 The findings from the 12/31/2023 schedule of findings and questions costs are discussed below and numbered consistently with the numbers assigned in the schedule. FINDINGS- FINANCIAL STATEMENT AUDIT NONE FINDINGS - FEDERAL AW ARD PROGRAMS AUDIT DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Finding number 2023-001: 14.157 Supportive Housing for the Elderly Condition: The Project failed to make the December deposit to the replacement reserve and did not catch up the deposits when the December voucher was deposited in early January. Recommendation: Care should be taken to catchup any missing deposits and return approved loans when the missing vouchers are eventually deposited. Action Taken: The Project made the required deposit to get current. Also, the project will make the required reserve deposit as part of its monthly review of financials to ensure this account is adequately funded.

Categories

HUD Housing Programs Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $188,773
14.239 Home Investment Partnerships Program $180,000