Finding 520957 (2021-003)

Significant Deficiency Repeat Finding
Requirement
C
Questioned Costs
$1
Year
2021
Accepted
2025-01-31
Audit: 340847
Organization: Hoover Seniors (CA)
Auditor: Cohnreznick LLP

AI Summary

  • Core Issue: The Corporation has not made required deposits to the reserve for replacements, totaling $3,305.
  • Impacted Requirements: This violates Section 5(a) of the Regulatory Agreement, which mandates monthly deposits of $1,377.
  • Recommended Follow-up: Management should transfer excess funds to the reserve and ensure future compliance with deposit requirements.

Finding Text

Condition/Context At December 31, 2021, deposits to the reserve for replacements account in a cumulative amount of $3,305 have not been made. Criteria Pursuant to Section 5(a) of the Regulatory Agreement, the Corporation shall establish and maintain a reserve fund for replacements and deposit an amount equal to $1,377 per month unless a different date or amount is approved in writing by HUD. The Corporation failed to make the required deposits to the reserve for replacements fund. Effect or Potential Effect The Corporation is not in compliance with the Regulatory Agreement. Cause Due to operating cash flow shortages, the required monthly deposits to the reserve for replacements are not being made. Identification as a Repeat Finding 2020-003 Recommendation Management should transfer excess funds from the operating account to the reserve for replacements account and continue to work toward bringing the delinquent accounts current. Questioned Costs $3,305 Auditor Noncompliance Code: N - Reserve for Replacements Deposits Finding Resolution Status Open. Reporting Views of Responsible Officials Management will transfer excess funds from the operating account to the reserve for replacements account to catch up delinquency. Additionally, management will be sure to make all deposits going forward.

Corrective Action Plan

a. Comments on the Finding and Each Recommendation Management concurs with the finding and agrees with the recommendation. b. Action(s) Taken or Planned on the Finding Management will transfer excess funds from the operating account to the reserve for replacements account and continue to work toward bringing the delinquent accounts current.

Categories

Questioned Costs HUD Housing Programs Reporting

Other Findings in this Audit

  • 520955 2021-001
    Significant Deficiency Repeat
  • 520956 2021-002
    Significant Deficiency Repeat
  • 1097397 2021-001
    Significant Deficiency Repeat
  • 1097398 2021-002
    Significant Deficiency Repeat
  • 1097399 2021-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
14.157 Supportive Housing for the Elderly $4.13M
14.239 Home Investment Partnerships Program $1.18M